Television digest with electronics reports (Jan-Dec 1957)

11 that "here is a set the consumer can take with him wherever he goes" should be played up. Varied colors of sets likewise form an important talking point for merchandise which will go from room to room, fitting in anywhere, decoratively speaking. Retailers must also give special consideration to marketing portables. No trade-ins, lower cost per unit of sale are already fixed patterns at dealer level in sale of portables. To them have been added the sale of service policies and accessories, all designed to squeeze maximum profit out of essentially low-margin sets. Trade's market specialists seem generally unworried by fact that retail sales of portables are trailing production by about 8%. Explanations for it vary, some contending that it may indicate portables are more seasonal than expected, or that it represents an intentional build-up by set makers for spring and summer markets, or that spring promotions on higher-end models reduced portable demand temporarily. One-year-old Baby: "Hotpoint is in TV to stay." says TV gen. mgr. D. Edward Weston in reviewing for us nearly one year's experience which he said "came up to Hotpoint 's expectations" and justified its entry into a market when some set makers were dropping out. He said that although he had no previous year for a comparison, he is "satisfied — but no one in any business should ever say he is completely satisfied." A Hotpoint survey had shown, he said, that the public bought Hotpoint because of its appliance-brand appeal. Increased set production is "very definitely" in Hotpoint's plan, Weston added, but said that parent GE will continue to make Hotpoint's TV sets — "now and in the foreseeable future." He also said that portables will accoiant for about 37% of Hotpoint's total TV production in 1957, disclosed that its first portables with 110-degree tubes were shipped to distributors this week. In line with GE (Vol. 13:14), its 14in. has price range of $140-$150, 17-in. for |170-$180. Total inventory is not large, he said, describing it as "a very nice working condition. We are especially glad to be down at the retail level." Production: TV output was 102,300 week ended April 5, compared with 108,266 preceding week and 118,113 in corresponding week one year ago. It was year's 14th week and brought TV production for year to date to about 1,586,000, compared with 1,982,041 in same period of 1956. Also this week, RETMA placed official Feb. production at 464,697, compared with 450,190 in Jan. and 576,282 in Feb. 1956. Of the Feb. 1957 production, 68,219 were equipped at factory with uhf tuners. Radio production totaled 283,754 (97,644 auto) week ended April 5, compared with 293,059 (95,158) preceding week and 224,544 (74,467) in corresponding week year ago. Radio output for 14 weeks totaled about 4,243,110 (1,739,659) vs. 3,780,489 (1,510,344) in same 1956 period. Feb. production was placed at 1,264,765 (522,859 auto), compared with 1,085,529 (521,624) in Jan. and 1,093,506 (437,611) in Feb. 1956. Retail Sales: TV set sales at retail were up slightly in first two months of 1957 over similar period in 1956, says RETMA, listing total of 1,148,796 this year vs. last year's 1,144,767. Feb. sales amoiinted to 525,437, compared with 530,554 in Feb. 1956. Radio sales at retail, excluding auto sets, totaled 1,088,392 in first 2 months, compared with 986,073 in first 2 months of 1956. Sales in Feb. alone were 525,029, compared with 454,867 in Feb. 1956. Impact of hi-fi (Vol. 13:13) was documented this week by report of Institute of High Fidelity Mfrs. listing 1956 sales of $166,220,000 for hi-fi components and tape recorders used in home systems, compared with estimated $121,000,000 in 1955. It foresees 1957 sales of $221,000,000. A breakdown shows 1956 sales comprised: speakers, speaker systems and enclosures, 25%; amplifiers and px-eamplifiex-s, 25%; tape recorders, 10%; tuners, 15%; phonos, including turntables, changers, cartridges, tone arms, etc., 25%. Portables are used overwhelmingly as second sets, according to Hotpoint survey reporting that 81% of portable purchasers kept old sets, only 4% traded them in. Survey, completed in last 3 weeks, also reports eight 14-in. portables sold for every one under 14-in.; lightness and compactness were primary reasons for purchase, with brand name second reason. Sylvania first quarter factory sales of TV sets “nearly tripled” those of same 1956 period, were 34% higher than pi-evious record fii'st quarter (1955), says TV-radio gen. sales mgr. Robert L. Shaw, adding that “first quarter volume was equally divided between our new 110-degree 17-in. portables and standard table and console models.” He foresaw no slackening in sales rest of year. Higher-priced TV sets with the max’ket firming up in the fall were predicted by Philco pres. James M. Skinner Jr. at stockholders meeting this week. However, he would not comment on Philco plans for 110-degree tube, saying their use in console sets is debatable in view of tube’s higher cost. He said Philco sales in first quai’ter were “up a little,” profits “down a little” from first 3 months of 1956. Mother's Day promotion by Philco calls for gift of Lucien LeLong perfume to purchasers of 7-transistor, battery-operated Model T-7 radio.