Television digest with AM-FM reports (Jan-Dec 1951)

mCH OPTIMISM KEYNOTES THE TV TRADE: "Like old times again," is way some describe current upsurging market for TV sets. Admiral, Motorola & Philco , along with some smaller producers, have added their voices to RCA's (Vol. 7:35) in saying things are vastly better at manufacturing level and looking up nicely at wholesale-retail. Industry’s Big 4 all claim their factory inventory gone or spoken for, say wholesalers are ordering at accelerating rate as dealer stocks are being depleted. Retail trade reports are good, too, though can't be pin-pointed as readily. It looks now like spring-summer slump is really over, though quickened pace of receiver sales might be attributed to deep price cuts designed to unload inventories, and to generally lower lists on new models. Everybody's optimistic, convinced trade at long last is seeking a "normal" balance. Some are more so than others. Said Philco spokesman: "Things are really and truly hot, and sets are really moving. We've had an increase each week in last 4 weeks. And radio is especially very healthy." Admiral spokesman said "business is firming up nicely" and noted "very good distributor-to-dealer movement." He even thought the industry might sell as many as 5,000,000 sets these last 4 months of 1951. But he admitted it was still too early to gauge retail activity very clearly, though this week things began to perk up very well as distributors "dropped in unannounced" to talk trade and place orders. Both Philco and Admiral indicated plants working at capacity permissible under current materials curtailments. Production now depends very largely on availability of materials (see p. 11). Prices, too, could go up again if components do. ^ ^ ^ ^ September Radio & Television Retailing ( Caldwell-Clements ) warns: "Look for TV retail prices to firm up between now and Christmas because of expected increase in demand which will put the damper on the wave of price-cutting. In radio, there won't be many small sets around for the Christmas buyer..." Some smaller producers share optimism, though good many are finding heavy price-cutting advertisements of name brands pretty tough competition right now. John Meek reports his production nov; at highest rate this year. He observed: "Orders from the smaller dealers have picked up but are still spotty. Many of the bigger stores, however, apparently have decided that TV business this fall will be normal for those who go after it, and are covering their requirements now while it's possible to get the merchandise they will need." He added that procurement of materials is gradually becoming more difficult. There's note of caution from the men who can't afford to guess wrong — the purchasing agents. Last week. National Assn, of Purchasing Agents, in forecasting business in general, warned that fall pickup in business will be slow and noted that any sharp increase in the fourth quarter of either civilian or defense demand "could create a wild scramble for materials." It stated: "The much-talked-of upswing in fall business is not reflected in August purchasing commitments. Buying is conservatively geared to the current trend of slow business, inventory reductions and CMP allocations. Viewing the 6 months of falling orders [and] present pricing confusion, inventory managers are putting extreme pressure on further inventory liquidation." Also cautious is statement from Capehart-Farnsworth president Fred Wilson: "We do not believe, as some have preached, that we are going to have a seller's market in the near future. We believe that we are going to have to work hard to sell the civilian merchandise we can manufacture in the next few months. While it is probably true that during the latter months of this year the demand for civilian electronics equipment may be much greater than supply, we are not counting on that condition to keep our plant moving. But we are planning to aggressively push the sale of our merchandise again in the belief that we are not going to have 8