Drop In Price Of TV Sets Predicted

Press, Volume CV, Issue 30980, 9 February 1966, Page 7

Drop In Price Of TV Sets Predicted

Half a million television sets will soon have been made in New Zealand, but more than 70,000 sets, worth more than £7m, are still to be sold, says “Televiewer,” the official journal of the Canterbury Televiewers’ Association.

In recent months retail prices have dropped—one make of 23in set by £4O officially and £6O unofficially—but because of the £7m worth of sets still between factory and buyer there will almost certainly be a further price reduction, the journal says.

The production figure of 500,000 sets will be passed this month, but estimated television receiving licences issued are fewer than 430,000. Taking into account unlicensed television sets, and allowing for licences issued for imported sets, the journal “conservatively” estimates unsold sets held by manufacturers, wholesalers, and retailers as more than 70,000. Even at a low average retail price of £lOO, these unsold sets are worth more than £7m. “Buyers’ Market’’ “These figures show that, incontrast to a few years ago, today’s television market is a buyers’ market,” says Televiewer. “The 500,000 sets have been made by local manufacturers in the last five years and a half. In the first year of production, 1960, only 8138 sets were made. In 1961, production jumped to 20,699 sets, and in 1962 to 54,871 sets. Production for 1963 was 98,400, and in the boom year of 1964 soared to 159,872. “Official figures are not yet available for last year, but production is estimated at just below 150,000 sets. “When television transmission began from CHTV3 on June 1, 1961, only 18,000 sets had been made in New Zealand. “The next 18 months to two years was a sellers’ market, with waiting lists for many popular makes. “Prices Have Tumbled” “Today, it is an entirely different situation: it is a buyers’ market, and prices have tumbled. “One make, which sold for £169 10s in 1961, was reduced to £149 a year ago, and a few months back was reduced by another £2O to £129 10s. With the decline in sales, and the credit squeeze, this set was available from some retailers at a special price of £99 10s. The same manufacturer has now produced a similar set, with a cheaper cabinet, retailing at £99 10s. “One of the problems concerning some of the major television set manufacturers is that production is planned up to six months ahead. With this planning, orders are placed for component parts, cabinets, etc. Therefore, in some of the major factories, a high level of production will continue until April or May of this year.

“Later this year, it is probable that manufacturers will introduce new lower-priced sets, with simplified circuits, but capable of producing excellent pictures and sound in city areas near the highkilowatt transmitters. Portable Sets “A greater emphasis will also be placed on the marketing of the small portable sets, some being both mains and battery operated. “The Ilin and 16in nonbattery sets introduced on the market just before Christmas sold well, and other manufacturers are considering entering this field. “The 500,000 television set production figure means there is one for every one and a half private homes in New Zealand; or, to put it another way, one set for every five persons.

“Therefore, production of portable sets could help to stabilise the market, especially with the new restrictions on persons bringing sets into the country. “In contrast to the successful introduction of portables, the new 25in screen set sales have been slower than expected. Some retailers consider manufacturers should have introduced the 25’s with greater national advertising. Radio Production “Beside the increased production of portable sets, manufacturers will also place greater emphasis on the production of radios, car and portable radios, and radiograms. “In the five years of intensive television production, the output of radios and radiograms was nearly cut in half. In 1960, the industry produced 151,898 radios and radiograms, but by 1964 this output had dropped to 77,470 radios and radiograms. “Last year’s figures, when released, are expected to show production in the 90,000 set mark, showing the trend away from the production of the larger television sets.”