Weekly television digest (Jan-Dec 1963)

lO-TELEVISION DIGEST OCTOBER 28, 1963 Can Japanese firms doing business with U. S. interests be held accountable under American laws? This is basic question in pre-trial maneuvering in anti-trust and breach of contract suit by Symphonic against Nippon Electric and group of other firms in N. Y. Federal District Court ( Vol. 3:29 p7). Defendants have moved to vacate charge on groimds that principal Japanese firms named in suit (Nippon Electric, New Nippon Electric) don't do business in U. S. Memorandum filed with court last week by Symphonic attorneys charges that companies have actually conducted business in U. S. themselves, and that NEC N. Y. Inc. and Sumitomo Shoji N. Y. Inc. are actually parts of parent companies, rather than independent corporations. Principal document filed by Symphonic last week was lengthy affidavit by Pres. Max J, Zimmer recounting details of NEC's TV sales negotiations with his company and subsequent events. Argument on motion to vacate is scheduled for Nov. 26. Imported transistor radios will capture about 72% of U. S. market this year. Sen. Saltonstall (R-Mass.) said last week in floor speech urging companies & workers in industries plagued by import competition to seek administrative relief through Tariff Commission. Quoting EIA estimates, he said imports last year accounted for 68% of transistor radio sales, Japanese-made sets alone comprising 63% of total sales. Figures used by senator presumably covered all types of transistor radios, including those with fewer than 3 transistors, which Japanese call "toys." Realtone Electronics, which manufactures radios in Japan and sells them here, reports net sales of $4 million for first 6 months of 1963, increase of 35% over last year's period's $2,987 million. Pres. Ely E. Ashkenazi said "Realtone trademark appears on one out of every 8 imported radios sold in U. S." He added that Realtone has now reached status of 3rd largest factor in Japanese radio output, although its production is geared mainly to U. S., not to domestic or other world markets. Electronic components business, which hit $2 billion level in 1953, will climb to $3,930 billion this year, reach $4. 6 billion in 1965, $6 billion in 1970, in opinion of International Resistance Pres. Walter W. Slocum. Total electronics sales volume in 1970 is projected at $20. 5 billion. Replacement parts, tubes & semiconductors, which accounted for $305 million a decade ago, will do $675 million this year, he said, and climb to $750 million in 1965, $950 million in 1970. Leased department for hi-fi equipment, electron tubes & batteries has been opened in Macy's Herald Square, N. Y. store by Terminal -Hudson Electronics, which shortly will open similar departments in 3 other Macy N. Y.-area stores. Terminal -Hudson has been operating leased departments in 4 of Macy's Bamberger stores since last year. Department store Inventory of TVs, radios & phonos at end of Aug. was valued g,t 14% higher than year ago. Federal Reserve Board reported. Their Aug. sales of home entertainment products rose 12% above Aug.1962 level, pushed Jan.Aug. volume 6% ahead of same 1962 period. A. R, Bernard Corp., import and merchandising consultant firm for cameras & tape recorders, has been formed in Chicago by A1 Bernard, ex-Argus exec. vp. Magnavox consumer products sales in 1963' s first 9 months rose 33% and pushed profits 5% ahead of year ago to $7. 2 million despite 13% sales decline to $118. 5 million (see financial table). Sept. -quarter consumer volume boomed 60%, parti^y oHset "sharp drop" in govt, business, and hoisted earnings 8% to $2. 8 million. Sales, however, dropped 17% to $40.6 million. Pres. Frank Freimann reported record sales of TVs, stereo hi-fi & related products in 3rd quarter, said momentum is expected to continue throughout balance of year. Magnavox closed 3rd quarter with $75 million backlog of unshipped govt, orders, up sharply from $40 million a year earlier. New computer caused Imaginary slump in Japanese radio exports to U. S. for Aug., according to "Electrical Merchandising Week's" Tokyo bureau. Shipments of radios with 6 or more transistors actually increased 18% to 855, 879 from the 725, 510 of Aug. 1962. Shipments for 8 months totaled 5,092,930, up 13.1% from 4,502,029 in same 1962 period. Total of 452, 116 originally reported (Vol. 3:41 plO) was derived by Japanese govt, by old computer, with additional amoimt obtained from new computer appended to released figures, "EM Week" said. RCA's record 9 -month pace (Vol. 3:41 pll) "is being maintained as we near the end of Oct. ," Pres. Elmer W. Engstrom told Investment Analysts Society of Chicago last week, predicting sales & profit records for 4th quarter & full year. He said consumer & industrial products will represent 44% of RCA's business this year, up from 38% in 1961, while govt, business has declined from 38% to 32%. Relative contribution to RCA profits from govt, sales has been cut approximately in half since 1960, he added. i Professional Products Dlv. , concentrating on electronic components for TV-radio broadcasting, commercial recording, TV & motion picture film production, and special soxmd applications, has been formed by Shure Bros. , Evanston, HI. components manufacturer. Robert W. Carr, formerly development engineering mgr. , appointed (h vision mgr. Commerce Dept, publications now available: (1) "Technology of the Production of Radio-Electronic Equipment," English translation of 1961 Soviet textbook (334 pages); $5 from Office of Technical Services, Commerce Dept., Washington 20230 (Order 63-31826). (2) "Estimated ^pments of Selected Electronic Components, First Quarter 1963," available from Electronics Div. , Business & Defense Services Administration, Commerce Dept. "Colorcast Indicator"— light which indicates whether station being tuned is broadcasting in color— is now included at no extra cost on all Magnavox color sets retailing at $595 & higher. Only other U. S. set with color indicator is Motorola. New sets: Two contemporary 21-in. consoles, from Andrea, at $850 (remote control) and $750 Magnavox introduces walnut-finish wood cabinet AM-FM table radio at $69. 90. DISTRIBUTOR NOTES: Minnesota Mining's RevereWoUensak Dlv. appoints N. G, (Scotty) Lyall audio-\-isual markets supervisor, names 3 consumer products sales j supervisors: B, R,Boatmim, Western area; D. B. Ubel, Eastern; R, C. Merryman. Midwest.