PROCEEDINGS OF THE I.R.E.

*

Radio Is Big Business!ORESTES H. CALDWELL

Now when Uncle Sam is conducting a census of his big family of 153,000,000, it is appropriatefor the radio-television industry to size up its own magnitude, as an aid to futiure planning.It is estimated that in 1950 we will sell $3,000,000,000 worth of radio and television productsto American purchasers.Dependable accurate radio-industry statistics are needed to eliminate the wide discrepancies

one finds between the statistical estimates of supposed industry authorities.Having compiled the statistics of radio and its branches over the past twenty-eight years, I

am putting down below my own present best estimate of the industry's outlook for 1950, com-

piled with the help of specialists in each division:At

Manufacturers'SellingPrice

6,000,000 television sets .... ..$................. .... .... .... ... .. 900,000,00012,000,000 radio sets ............. ........................ 260,000,000

Broadcast, recording and studio equipment 200,000,000

Mobile, airplane, police and taxi radio .............. ... 100,000,000Replacements, accessories, instruments .......................... 190,000,000Government purchases ........................................ 350,000,000

Radio and television total ............................................ $2,000,000,000Electronics-industrial, scientific and medical ..... 100,000,000

Industry total .......... ........................................... $2,100,000,000

At Final orCustomers'

Price$1,600,000,000

500,000,000200,000,000100,000,000250,000,000350,0000,00

$3,000,000,000100,000,000

$3,100,000,000

There you have the tremendous magnitude of our industry today-over 95 per cent of itradio and television! For the total "electronics" or noncommunication applications gross up to a

bare 5 per cent of the industry's output at manufacturers' selling prices, or 3 per cent of output atfinal selling prices. Stated another way relatively, the present size of "industrial electronics"compares approximately with that of Rhode Island in the U.S. picture.

In the past there has been some disposition to call this huge industry of ours by the name ofits 5 per cent industrial component. But no longer should loyal radio-engineers and members ofthe IRE let the small $100-million electronic tail wag the $3-billion radio-TV dog!We need better radio-industry statistics to evaluate our markets truly and accurately.In fairness, too, we should call our industry and our markets by their right names. For this

is, after all, the radio-television industry, and nothing else!

Engineers are not only capable and successful technologists. They are also powerful stimu-lators of industry and commerce and may well be proud of the part they play in the welfare oftheir homeland.

A radio and television pioneer, and a former Federal Radio Commissioner, who is presentlythe Editor of Tele-Tech, here presents impressive statistics showing what the IRE membershipare contributing to the national productivity. Their work constitutes an outstanding and en-couraging accomplishment.-The Editor.

4w

- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~40

1950 723