Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-06-11
&c Using Yankee Ingenuity to Battle
Japan's Invasion of E|ectronics Field
Small TV Price
Brought Down to
Less Than $500
BY CHARLES COVELL
star Business Writer


merican manufacturers
may have found a weapon with
which to fight the mounting
Japanese invasion Of United
States markets.
The weapon is an old one.
1t is popularity called Yankee
ingenuity and the latest to
utilize 1t is General Electric
Co.
GE recently announced the
introduction of q portable tel
evision set with an 11-inch
picture tube that is lightweight
enough for a child to carry. 1t
is scheduled to hit the retail
markets soon.
Biggest news, though, is In
the price, 1895, list. Until now,
GE representatives say, even
the japanese couldn't produce
a set that would sell for under
500. Only after GE announced
the new portable did the Japa-
nese make hurried plans to re-
duce the price of an 8-inch
model to meet the competition.
Interesting Background
Behind the new set, too, is
an interesting story. 1t goes
back to the early postwar years
when Japan had only one real
asset, cheap labor, while the
United States had the plants
and machine tools. In those
days this country could offset
the great difference In labor
costs through its high degree
of mechanization.
Then, like the Germans and
others whose plants were
bombed out, the Japanese
began to rebuild. While United
States machinery was wearing
out, they came up with new
plants and equipment that in
some cases were equal to or
better than ours.
Soon the. Japanese were
flooding the markets with their
products at prices far lower
than consumers were paying
for United States goods or even
European imports. This has
been particularly true in items
that take up small shipping
space.
Japanese penetration Of for
eign markets has been espe-
cially noticeable in optical
goods. Their cameras and bin
oculars have been giving the
Germans keen competition. In
sewing machines, Japan in a
recent month produced more
than any nation had in any
one month in history.
Competition is Met
To meet this and other COM
petition, some American COM
panies with old, established
names have been having their
products made in that country.
But In no other field has
Japan's economic growth been
more apparent than in the
electronics industry. In 1855,
Japan's electronics production
totaled only $136 million. fig
ures compiled here by the Mar
keting Services Depart
ment Of the Electronic
Industries Association show.
In that year. United States
production totaled $6.107 bill
lion, or 81 times that of Japan,
Then Japanese output OF
pocket radios, television sets,
other electronics products and
components began to soar. BY
1859 Japan was approaching
the billion mark, producing
SCOTT million while the United
States production was $9.75
billion. At the end Of last year
the margin was even narrower,
Japanese production reaching
SIS billion and the United
States, 1882 billion, a ratio
Of only 8 toll.
The competition has been
even more pronounced in tele-
vision. In 1856, Japan produced
$4,000 units while the United
States output was 1888 million.
This was q ratio Of 26 to l. BY
1851, the Japanese were pro-
ducing 4.585 million units while
the United States production
was 6.l78 million. a ratio Of
only IA TO /. In 1862 the mar
gin was closer with $500 mil
lion units made in japan and
6.47l million in the United
States.
Flood Continues
Trade sources say that the
wave of consumer electronics
shipped here from Japan shows
no signs Of cresting. In the first
quarter Of 1868. the two key
products. television and radios
with three or more transistors,
showed substantial gains over
the first quarter Of 1862.
Operating under standards