Television digest with electronics reports (Jan-Dec 1958)

13 I Their labor factor is unbeatable. Govt, sources tell us U.S. radio produc tion workers get about 7 times more than Japanese hand workers. And they look for no increase over there in hand-assembly costs in the near future. Competition among Japanese radio manufacturers — there are 36 firms known to be in the field — is rising. As with TV here, competition may depress prices still further. In early 1957, it was thought that there were only 6 makers of transistor radios among Japan's radio manufacturers. By August 1957, there were 17, according to U.S. Dept, of Commerce list (|2) which carries some familiar American brand names; Columbia, Crown, General, National, Sharp, Silver, Star, Standard. And these Jap brands: Hitachi, Kikusui, Koyo, NEC, Dianet, Sanyo, Toshiba, Sony. ^ ^ 'i' What can be done about it? "Not much,” say industry spokesmen — especially in light of our present reciprocal trade policy. Precedent shows that before any industry can ask for increased tariff protection it has to prove that import competition is literally destroying U.S. markets and forcing American labor out of work. This would be hard to prove, what with radio bounding back last year to an 8-year record high of 10,000,000 home units (not to forget 5,000,000 auto units, half of them transistorized) and expected to do even better in 1958. As for a Japanese invasion of our TV market, it's probably a long way off; they now have all they can do to meet their own demands since TV began to boom in Japan (p. 10). TVs haven't passed 500,000 a year yet. Tokyo prices for 14-in. TVs are still higher in dollars than our prices here for even bigger sizes. Japan's 5-year plan calls for increases from §2.8 to $4.7 billion in exports by 1962 — with 41% increases in total production, 61% in industrial. The Japs mean business — that's for sure. TV-Radio Production: TV set production was 103,730 in week ended Feb. 7 vs. ! 119,748 preceding week & 101,932 in 1957 week. Year's 5th week brought production to 550,120 vs. 550,113 last year. Radio production was 224,149 (76,794 auto) vs. 245,861 (79,890 auto) in preceding week & 302,356 (127,822 auto) last year. For 5 weeks, production totaled 1,158,912 (422,868 auto) vs. 1,336,812 (649,446 auto). Retail Sales: Jan. TV set sales at retail were 575,000 vs. 632,000 in Jan. 1957, reports EIA. Total inventory in pipelines at end of Jan. was 2,050,000 vs. 2,300,000 at end of last Jan. Radio sales at retail were 600,000 in Jan, (excluding auto & radio-phonos) vs. 580,000 (which statistically included auto & radio-phono) in Jan. 1957. Total radio inventory at end of Jan. was 3,330,000, same as Jan. 1957. Zenith Sues Admiral: Claiming patent infringements on 2 widely advertised features of its TV sets, Zenith filed suit Feb. 11 against Admiral in Chicago Federal Court asking injunction and treble damages. Amount of damages wasn’t specified. Suit charges Admiral infringed on 5 Zenith patents involving “Space Command” remote control device and “Fringelock” circuit for holding sync in poor reception areas. Zenith alleges that Admiral hired former Zenith engineer, co-inventor of “Fringelock,” to copy the device and that Admiral’s fringe circuit is “substantially indistinguishable” from Zenith’s. It states that Admiral’s remote tuner is so similar that it can “partially control” Zenith sets and vice versa. Complaint says sales of “Space Command” sets have totaled more than ^36,500,000 since device was introduced in 1956, and I that Zenith spent more than $4,500,000 on research in last fiscal year. Admiral issued statement that it will soon file I answer asking dismissal of suit and accusing Zenith of I “seeking to stop progress through baseless court action j lacking in validity.” It said circuits and principles of “Fringelock” have been commonly used “over the past 4 decades,” that ultrasonic “Space Command” principle was published in detail, with formulas, by Lord Raleigh in 1877, is same principle used in automatic garage door openers. As to charge of hiring Zenith engineer to get details of “Fringelock,” Admiral said engineer was hired 2 years after he quit Zenith and 3 years after the circuit was first incorporated in Admiral receivers. Admiral this week engaged Selvage & Lee as public relations counsel. Repeal of excise taxes on TVs, radios, phonos, records and all appliances is proposed in S-3263 & S-3264, introduced this week by Senators Douglas (D-Ill.), Morse (D-Ore.), Carroll (D-Colo.). Bills would also eliminate taxes on luggage, admissions, sporting goods, etc., and would cut telephone, telegraph & transportation taxes by 50%. House Ways & Means Committee still has before it proposal to eliminate excise tax on TV sets equipped with all-channel tuners (Vol. 13:50-51). Committee sources say they don’t know when subject of excises will be taken up. Latest IRE TV standard — “Measurement of Luminance Signal Levels, 1958” — is carried in Feb. Proceedhu/a of the IRE. Issue also includes index to all IRE standai'ds on definitions of terms for 1942-57.