Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-24
INCREASE IN RADIO
SALES IS RECORDED
Public Shows Desire for
Midget SetS-Domestlc
Market Is Good.
BY J. G. RoYLE.

Manufacturers Of midget radio sets
are piling up profits at Q spectacular
rate at the present time. This II con-
clusively shown by the enormous Ia.
crease in the number Of Arms producing
such sets.
There are now a independent manu-
facturers in this field, IS Of whom were
unknown in radio manufacturing six
months ago. At a conservative esti-
mate, 100000 midget sets have been
sold this year. The idea originated on
the Pacific Slope last Summer and
spread East with remarkable velocity.
Expect Increased Demand.
How long the craze for midgets viii
last Is question. The midget set
manufacturers declare they are here to
stay and that the demand will continue
to grow as the public becomes more
familiar with the product. Their war
cry Is "A radio for every room" They
say that the cost Of small sets is such
that a family can we'll afford to have
three or four in the house instead of
one large, ornate, expensive set. They
add that In the modern type of DWELL
ing and apartment space Is at a pre-
MUM and that the small sets are not
menaced by this factor.
On the other hand, few Of the old
line radio manufacturers who have gone
into midget set production hold that the
sets popularity is a craze Of the mo-
ment and will not last. They say that
when the new manufacturers are all
pinned down to the royalty basis, under
which eventually they must operate If
they continue to use the registered radio
patents, the profit will be gone out of
the business.
Considerable pessimism exists at pres
ent with regard to foreign sales of
American radio sets. A few companies
are establishing branch factories In
Europe, but in nearly every instance the
plants financed by American producers
are guaranteed against loss by Euro
pean interests. The sale of used sets
abroad also Is regarded pesSimistically,
for by the time instruments are nut
into condition and distribution charges
paid, little chance for profit remains,
Sees Good Domestic Market.
The head of one of the large Amer
lean concerns declares that II this sam.
enort were put into sales promotion in
the United States it would yield far
more sales and profits than in the for
elgn held. This man contends there Is
no such thing as a saturation problem
In the United States. He SAYS that
just as man continues to buy suits
OF clothes, so he will continue to buy
radio sets whether they are actually
worn out or not. Style and appearance
Will have much to do with maintaining
this trend, he asserts.
1t is quite evident, according to re-
ports received by Government agencies
here, that the radio industry win not
SCH more than about 2,25O,OOO sets this
year. Last year, despite the slump in
the last quarter, 100000 sets were
sold and the industry then expected to
do fully as well in 1880. The sale of
tradsd-in sets has also slumped. How
ever, the losses there have been coun-
terbalanced to a very Considerable ex-
tent by the recovery of parts which
could be reused in the manufacture o.
new sets. Tubes can be and are being
re)uvenated. The msthod of doing this
Is held secret.
copyright. 1930)