Television digest with electronic reports (Jan-Dec 1959)

16 AUGUST 10, 1959 Hoffman consumer products v.p.-gen. mgr. Ray B. Cox — Factory shipments of TV sets in June & July were more than double those of the same 1958 months, stereo shipments up 126% during same period. Magnavox says its July orders are twice as heavy as last year. Others are in the act, too — and there's no doubt that pickup now is universal. Port of the boom, of course, is due to fact that inventories have been very low — and also that comparisons are being made against a couple of very poor 1958 months. But the indicators are there, and Aug.-Sept. figures will delineate exact proportions of TV's 1959 recovery. 6-MONTH REPORT ON OUTPUT & SALES: Official EIA figures confirm our report of 3 weeks ago that TV retail sales took more-than-seasonal jump from May to June, bringing first-half-1959 sales ahead of comparative 1958 figures for first time (Vol. 15:29). TV sales statistics for first half indicate real surge is needed in rest of year to reach the 6 million sets which many industry leaders are predicting for 1959. On seasonally adjusted basis, this year's firsthalf retail sales of 2,263,957 sets are at annual rate of a little less than 5.5 million. Other indicators, however (see story above), give evidence that a real sales spurt has started. Retail radio sales for first 6 months of 1959 totaled a whopping 3,158,881 (excluding auto sets) compared with 2,712,134 in first-half 1958. Jime radio sales were 678,195 vs. 627,197 in Jime last year. Including auto sets, radio production at the halfway mark this year was more than 50% ahead of last year 7,107,586 (including 2,900,196 auto) vs. 4,619,163 (1,464,519 auto). Cumulative production of domestic FM sets for the first 6 months of this year was 223,423. Here are EIA's 1959 figures for TV retail sales & production (compared with 1958) and radio retail sales (1958 comparisons unavailable because of change in statistical methods): Radio Retail Sales TV Retail Sales TV Production (excluding auto) 1959 1958 1959 1958 1959 January 501,704 581,486 437,026 433,983 700,490 February 448,173 448,727 459,492 370,413 474,888 March 425,751 416,756 494,032 416,903 515,563 April 263,998 243,132 389,251 302,559 388,863 May 279,536 237,189 431,911 266,982 400,882 June 344,795 250,362 571,003 377,090 678,195 TOTAL .. 2,263,957 2,177,652 2,782,715 2,167,930 3,158,881 Included in TV output figures (above), only 180,443 of first-half-1959 production was equipped with uhf tuners, as opposed to 209,726 in the same period last year. TV-RADlO PRODUCTION: EIA statistics for the week ended July 31 (30th week of 1959): July 24-31 Preceding wk. 1958 wk. ’59 cumulative ’58 cumulative TV 91,507 98,447 99,929 3,129,663 2,442,929 Total radio ... 191,895 240,644 153,552 7,936,924 5,212,135 auto radio 47,436 77,827 38,994 3,156,253 1,650,898 Factory sales of picture & receiving tubes for first 6 months of 1959 were strongly ahead of first-half 1958, according to EIA statistics. First-half picture tube sales totaled 4,370,535 units valued at $84,256,279 vs. 3,689,587 at $73,228,119 first half of last year. In June 1959, picturetube sales totaled 766,566 units at $15,136,612 vs. 667,080 at $12,745,714 the preceding month and 725,846 at $14,203,381 in June 1958. Jan.-June cumulative receiving-tube sales were 201,979,000 at $175,774,000 in 1959 compared with 190,406,000 at $166,268,000 in the 1958 period. During June 1959, receiving-tube sales totaled 37,421,000 at $33,099,000, up from 30,612,000 at $25,904,000 in May 1959 and 36,270,000 at $31,445,000 in June 1958. Retail 3% sales tax on TVs, radio, phonos & components has been approved by Texas legislature. It will become effective Sept. 1, if signed by the governor. “Warranty armament races” — competition among manufacturers in extending long-term warranties — ^were attacked by NARDA exec. v.p. A. W. Bernsohn in Aug. 7 talk to Texas Electronic Assn, in San Antonio. Such extended warranties, he said, hurt the parts and service business of retailers and gain little goodwill for the manufacturer. Instead, he proposed that set makers compensate retailers or service dealers for repairing merchandise found to be in imperfect condition on arrival — following the auto industry practice. He said this program would reduce the need for warranties of more than 90 days. He also assailed the principle of manufacturers’ “captive service,” urging instead a mere careful franchising of independent sales & service agencies. “Every time you permit a manufacturer to take over a part of your burden” he told them, “he feels a moral responsibility to take over . . . part of your profits.” r t h I & 1 i 1 I I I I I