Television digest with electronic reports (Jan-Dec 1957)

with Electronics Reports WYATT BUILDING ^ WASHINGTON 5. D C. • TELEPHONE STERLING 3-1755 Trade Beport January 26, 1957 ) TV's OVER-COUNTER VALUE-$2.8 RILLION: The 7,100,000 TV sets estimated to have been sold to the public last year represented consumer investment of about |1.6 billion, according to authoritative marketing sources. An additional investment of some $1.2 billion was made by consumers for TV servicing, including parts and installation, service calls, etc. An over-the-counter valuation of $2.8 billion was thus made on TV in 1956 — approximately same level as in 1955, when 7,421,084 sets were sold. That level isn't expected to rise much, if any, in 1957. Despite exhortations of some industry leaders to place greater emphasis on higher-priced units as means of increasing profits, all the evidence indicates that portables will account for at least 35% of TV production this year, perhaps higher. Color seems to be only hope for increasing TV's dollar volume, assuming that portables continue sharp upswing. If color sales in 1957 approach the 300,000 level foreseen by some, the over-all dollar volume would rise substantially. Note ; Rarely mentioned in connection with portables is fact that few are made for all-channel reception. Considering that only about 10% of all sets currently made are equipped at factory for uhf, net effect is to reduce further the growth of uhf audience. As portables increase in importance, this becomes bigger problem. * * * ❖ TV inventories at year's end were reduced to 2,500.000, thanks to surprisingly good Dec. retail movement. It's estimated that more than 900,000 units were sold in Dec. 1956, perhaps equalling the 936,467 sold in Dec. 1955. A late spurt developed shortly before ChristmasI, helping to make up for earlier sluggishness. Plant layoffs were also an important factor in cutting inventories. Nearly all set makers operated with reduced manpower in last half of Dec. Philco closed its TV plant entirely over holidays, as did many smaller manufacturers. Inventory correction is still continuing. GE this week shut down TV receiver and cathode-ray tube plants in Syracuse, plans to resume operations Jan. 28. But it also gave indefinite layoff notices Jan. 18 to 1200 workers. Most are expected to be recalled in spring. GE's inventory of portables is known to be high. Price "specials" abound at all levels of trade, but the oft-predicted "dumps" in TV have apparently failed to materialize thus far — at least not on a wide scale, certainly not on anything approaching a national level. Undoubtedly the business pickup in Dec. and consequent improvement in inventories have had a lot to do with it. Whatever the cause, an encouraging stability settled over market in Jan. Economic Outlook: There's no cause for alarm in the over-all economic picture, says authoritative National Assn, of Purchasing Agents. Its monthly business survey, released Jan. 27, reports that new orders have shown a moderate upturn, production remaining high (28% of agents said it was higher than Dec.), and inventories "about right." Employment remains high, at approximately Dec. levels. Biggest worries, said report, are renewal of price increases and prospect of further inflation. It also declared that, as for the last 2 months, purchases of production materials are limited to short term, some 66% of members reporting that forward commitments are being confined to 60 days or less. Shortages were found in nickel, steel, some items of electrical equipment — though none were regarded as serious. Production; TV output hit 144,597 week ended Jan. 18. compared with 118,471 preceding week and 164,570 in corresponding week of 1956. For first 3 weeks of year, TV output came to about 340,000, as against 441,264 in first 3 weeks of 1956. Radio production totaled 304,540 (139,673 auto) week ended Jan. 18, compared with 268,052 (136,836 auto) preceding week and 281,657 (135,422 auto) in corresponding 1956 week. Radio production for 3 weeks amounted to about 767,000 (379,000 auto), compared with 808,971 (389,736 auto) in corresponding period year ago. 11