Television digest with electronic reports (Jan-Dec 1952)

IN 5 YEARS— $5 V4 BILLION WORTH OF TVs: New table of statistics from RTMA, revamping TV-radio output and factory-value figures, reveals that during that 5-year postwar period the American industry turned out 17,002,169 TV sets valued at the factory at $3,166,986,300, and 75,117,262 radios valued at factory at $2,175,936,597. Assuming all were sold, that would mean public paid $5,257,197,258 for TV receivers, $3,612,054,751 for radios — based on usual industry formula of retail figure at 166% of factory cost. Five-year count doesn't include 1946 output, first production year after the wartime freeze when some 5070 TV sets were made (at estimated factory value of $1,250,000) and 15,995,000 radios (estimated factory value $434,244,000). Nor in case of TVs does it include estimated 8000 prewar sets, value unknown. Neither RTMA figures nor our retail projection accounts for TV replacement tubes and parts, antennas, accessories, cost of installations — which, even allowing for waves of distress selling that often forced prices down, undoubtedly add a few billion to the public's TV bill. Our recent calculation of $6.5 billion overcounter business since TV came into being (Vol. 8:3) is still very good guess. v ^ ‘p * *i* RTMA is issuing new statistical tables in 29-p. booklet, which also reveals such interesting trade trends as these: TV table models accounted for 7,772,976 units of 5-year total, consoles & consolettes, 7,800,359, radio-phono combinations 1,428,834. Table models represented 65% of unit production in 1947, falling to 42% in 1951 ; consoles & consolettes went up from 21% to 52% in same period, phono combinations went down from 14% to 6%. Exports accounted for 56,075 units in 1951. Noteworthy in radio field was fact that auto production rose from 3,459,061 in 1947 (17% of total radios) to 4,542,920 in 1951 (36%). Home sets dropped from 14,082,662 (70%) to 6,751,452 (53%). Exports of radios totaled 231,802 in 1951. MORE LEADERS ADOPT INBOARD PRICING': Admiral and Motorola have followed example of RCA in quoting one-package prices for their TV sets — new retail lists, starting next week, to include Federal excise tax, 90-day parts warranty, one-year tube warranty. This so-called "inboard pricing" is designed not only to allay customer confusion but to give dealers somewhat better discounts. Hoffman Radio was first to break ice week ago (Vol. 8:12), and it's known other manufacturers, big and little, are reappraising their price structures with same probable objective. Of the Big 4, only Fhilco hasn't adopted idea as yet — but it won't be surprising if most of industry does so by summer. Admiral freely credits NARDA for bringing about its change of heart. NARDA president Mort Farr has spearheaded retailers' persistent complaints against extras — the hidden costs tacked on after customer is lured into store by low advertised price. An idea of how much is hidden is given in rough calculation that RCA's $230 table model embraces $14.11 tax, about $12 worth of warranty, or about $26 in all. Customer resentment was felt so strongly by retailers that they put heat on manufacturers. Motorola spokesman said, "We have come to the reluctant conclusion that RCA was right in the first place." RCA had held to one-price idea from start. * * * * In adjusting their list prices (see Topics & Trends), Admiral & Motorola took pains to say they weren't cutting prices, were merely lumping tax & warranty with base price — though there may be slight differentials in some models. Both decried current price-cutting, saying it's nothing more than "dumping" by a few manufacturers caught with too much inventory. Majors don't seem too concerned over currently sluggish market. They say 8