Television digest with electronics reports (Jan-Dec 1957)

11 "What I have disclosed about metropolitan service should convince you that we are not trying, by any stretch of the imagination, to take over the entire service function," he said. "On the contrary, we think it would be wonderful if we could develop more good and capable servicemen, including independents." Dan Create, v.p. of RCA Service Co. , said that RCA service stations do less than 10% of all service on RCA products, and reaffirmed recent statement by RCA pres. Frank M. Folson that factory service branch must have no competitive advantage over an independent and that servicing choice must rest with consumer (Vol.l3:l). W.B. Creech, mgr, of major accounts, Westinghouse major appliance div. , said factory servicing has never proven very successful in TV metropolitan markets because components are interchangeable and large body of independent servicemen has been trained. Situation is less favorable in white goods, he added. ♦ ♦ ♦ * Consumer Buying Survey: Average consumer faces 1957 "satisfied with his financial situation" and confident in nation's economy, reports latest study of consumer buying intentions, conducted by U of Michigan Survey Research Center for Federal Reserve Board. Latest survey, conducted in Nov. -Dec. 1956, found only 5% of the 1350 in^rviewed expected "bad times" in 1957, the lowest figure in last 4 years. By contrast, 74% expected good times. Survey reported: "The primary change which has oc curred in the last few months in people's attitudes toward their personal financial situation may be described as a further leveling off." For TV industry, however, the attitudes were somewhat less assuring. Consumers were asked: "Do you think this is a good or a bad time to buy large household items such as furniture, house furnishings, refrigerators, stoves and TV seta?" About 51% replied that it was a "good time," compared with 54% last Aug. Some 17% said it was a "bad time," as against 14% in Aug. Plans to buy homes and autos were expressed more frequently than last year, while plans to make major home improvements remained at approximately same level as last August. Retail Sales: An estimate of 6,650,000 TV sales at retail for all of 1956 seems quite realistic in light of the 5,847,590 reported by RETMA as sold in the first 11 months. They compare with 6,487,617 sold in first 11 months of 1955, when full-year sales were 7,421,084. Sales of radios in first 11 months of 1956 totaled 10,897,177 (4,217,050 auto) vs. 11,897,916 (6,365,333 auto) in corresponding 1955 period. Production: TV output advanced to 118,471 week ended Jan. 11, up from 75,919 in first week of year, bringing 2-week total to 194,390, as against 391,354 in first 2 weeks of 1956. Radio production totaled 268,052 (136,836 auto) week ended Jan. 11, compared with 194,768 (102,561 auto) in preceding week. The 2-week total of 462,820 (239,397 auto) compares with 531,966 (269,354 auto) in first 2 weeks of 1956. RETMA also this week placed of f icial . 11-month 1956 TV production at 6,760,045, compared with 7,151,895 in first 11 months of 1955. Radio production in first 11 months of 1956 was 12,266,597 (4,217,050 auto) vs. 12,834,102 (6,365,333) in same 1955 period. TV sales by Canadian distributors totaled 561,590 in first 11 months of 1956, compared with 690,071 in corresponding period of 1955, reports RETMA of Canada. Of the total last year, 291,895 were consoles, 257,294 table models, 12,401 combinations. Nov. sales were 63,250, compared with 86,778 in Oct. and 114,432 in Nov. 1955. For first 11 months last year, Montreal led in sales, with 106,514; Toronto, 82,486; other Ontario, 52,036; British Columbia, 44,371; Alberta, 40,036; Manitoba, 40,034; Quebec City area, 38,336; Ottawa & eastern Ontario, 33,302; Hamilton-Niagara, 27,376; Nova Scotia, 24,343; Saskatchewan, 20,728; New Brunswick & Prince Edward Island, 16,253; Windsor, 15,015; other Quebec, 14,883; Newfoundland, 5877. Hottest merger rumor of week involved proposed acquisition of Raytheon by Glenn L. Martin Co. Scuttlebutt drew sharp denial from Raytheon pres. Charles F. Adams .li-., wlio said “there are no negotiations in progress for a merger with any other company.” Big TV replacement market in 1957 is foreseen by Robert L. Shaw, gen. sales mgr. of Sylvania TV-radio div., noting that 22.4% of all TV sets-in-use as of Jan. 1, or 9,288,160 sets, were built before 1953 and nearly 13%, or 5,295,000 sets, were built prior to 1950. In formal statement, he likened current upsurge in portable TV to trend to less expensive radio purchases in 1930s. “This switch in consumer preference most certainly did not kill the radio set business,” he said. “Instead, we find that today radio sales have outdistanced predictions of 20 years ago and still are on the rise. True, the radio console is a thing of the past but millions of table models, clock radios, portables and now transistor radios are being sold, and at a profit.” Hallicrafters has converted almost entirely to privatelabel TV production, pres. Wm. J. Halligan Sr. telling us: “We have reduced our own-label output to a bare minimum, just enough to keep our foot in the door for such future developments as color. But our intention is to build up the private-label business.”