RADIO PRICE REDUCTION IMPROBABLE

Radio Record, Volume I, Issue 16, 4 November 1927, Page 4

RADIO PRICE REDUCTION IMPROBABLE

IMPORTANT BEARING OF PATENT POSITION ENCOURAGEMENT TO HOME BUILDERS Here, in New Zealand, one often hears "outsiders" fatuously remark ‘tT think Vl wait till radio sets get cheaper. There is bound to be a fall in prices." In England first.class radio receiving sets are not showing any signs of being sold cheaper. On the contrary, with the added cost of refinements 2nd better quality now in evidence prices are higher than a year or two ago. . Over ninety per cent. of the radio valve sets on sale and sold in New Zealand are of American manufacture, and the position in the United States, together with the increased New Zealand tariff against American sets will prevent any fall in present prices even if there igs not a rise in the near future which, however, is probable. POSITION IN AMERICA. Mr. Elugo Gernsback, editor of the New York "Radio News," says :- "The Radio Corporation of America, and its allied interests, who always have been in the lead, as far as radio patents are concerned, have during the course of years acquired practically all 6f the important radio patents in this country; and they are therefore in a position to impose terms on all who have infringed their patents. Of course the ery of "Monopoly!" will, as usual, go up; but the point remains that, after all, every patent is a monopoly, and that any one to whom is issued a patent must protect his rights-otherwise he stands to lose them. In upholding the rights to its patents, the Radio Corporation, after all, is within its rights, and will now reap the benefits from the patent situation, PRICES WILL RISE. "As generally known, practically every one of the large radio manufacturers is now paying a royalty of 74 per cent. to the Radio Corporation, with a clause of $100,000 (£20,000) per annum minimum royalty. ‘This, of course, means but one thing, and that is, the price of radio sets must go up. Furthermore, the small set manufacturers will no doubt go back into the parts business; as the Radio Corporation will probably license only those who are financially responsible (and it may be presumed that most of the smaller ones probably are not in a position to guarantee a minimum royalty of $100,000--£20,000-per year). "What has been predicted for a number of years has thus come to pass. ‘The radio set business will be in the hands of a few strong corporations, which will control the legitimate sct business in the United States on a highly competitive basis. All other reports te the contrary, this certainly is not a general monopoly of the set business; and we believe that, in time to come, it will work out to the advantage of the public. MANUFACTURERS OF PARTS, "But what about the parts business? It is believed in many quarters that, because of the conditions just mentioned, the general parts business will come back with a grand rush. Parts manufacturers, of course, sell their merchandise to set manufacturers; and this outlet, frequently, is their Jargest source of in» come. But outside of this, they sell their merchandise to radio dealers and to professional set builders. Krom present indications, there will be a great and immediate demand for parts; because the small set manufacturer, being put out of the way, will leave the road clear for the professional set builder to come into his own. AMATEUR BUILDERS ENCOURAGED. "The man who builds a set now and then, in his attic, is not likely to be worried by any patent situation, nor will the radio interests be much concerned about professional set builders, Quite the contrary, the Radio Corporation has always maintained that it encourages the amateur and constructor. More than ever, no doubt, the big interests now feel that they have little to lose on account of the set builders." HINT TO N.Z. DEALERS, Owing to the patent position in America there is every Jikelihood of a rise in the prices of American sets. The New York "Radio News" says :- "There are always several hundred thousand people in the United States who build their sets either for themselves or for friends; and this number is likely to increase materially in the immediate future, because of the reason just explained, Summing up, therefore, these facts, it is reasonable to predict that the radio partg business during the next few years will show a very large and healthy growth." New Zealand traders should take the hint and stock an abundance of parts.