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|RCA Press Release for January 7, 1983 No. 2|
LAS VEGAS, January 7 -- Innovative new products will continue to boost industry unit sales of video products to new records in 1983, Arnold T. Valencia, President, RCA Sales Corporation, forecast here last night at the opening of the Consumer Electronics Show.
"However, " Mr. Valencia said, "intense competition will remain a major factor throughout a year that will see a combined total of more than 20 million TV receivers, video cassette recorders and cameras sold by the video industry."
Noting that color television, the principal product category of the video industry, established a unit sales record last year, Mr. Valencia said RCA expects an improved economy to help color TV reach another record of 11.7 million sales to dealers in 1983. He expects video cassette recorders to continue an upward sales movement with a strong 35 per cent rise in 1983 to 2.7 million units, compared with a record 2.0 million units in 1982.
The RCA executive cited "certain favorable trends in a very difficult economy last year, "including the increasing popularity of remote control color TV receivers and the strong demand for VCR's and video cameras. "However, we recognize the need for greater profitability in the video business and believe that 1983's new products will provide dealers with specific and meaningful profit opportunities. After all, dealers have to make their own profits by emphasizing those products that can be properly displayed and demonstrated to a public that is more aware of video than ever before," he added.
Mr. Valencia cited the particular attraction of multi-function remote control color TV receivers, projection television and relatively new products such as portable VCR's and stereo video disc players. "The alert dealer who wants to build a profitable video business will also give consideration to new accessory products such as advanced games, computers and software."
In his review of the basic video product categories, he outlined RCA's outlook for the industry's coming year:
-- Remote control will grow to 38 per cent of all color sets sold in 1983, up sharply from 25 per cent in 1980.
-- Projection television will rebound this year to some 150,000 units for the industry, nearly triple the total in 1980.
-- Black-and-white TV receivers are expected to increase slightly in 1983 to 5.8 million units.
-- Portable VCR's are predicted to account for nearly 30 per cent of all VCR models sold in 1983, "providing a healthy sales dollar stimulus to an increasingly competitive business."
-- The dollar sales opportunities represented by portable VCR products will be magnified this year with an expected industry sales total of some 400,000 cameras, a one-third increase over 1982's sales total.
Mr. Valencia noted that new segments of the video business had begun to build sales strength in 1982, "indicating that dealers and consumers are recognizing the reality of color television as the focal point in the home for an expanding array of video entertainment devices." As an example, he said RCA has been increasingly pleased with the sales strength of its new line of video monitors that are designed to enhance the new video accessory products.
"Our direction is clearly towards the consumer, who even in today's economy, is not looking for the cheapest product he can find, but rather the best product he can afford," Mr. Valencia added.