Bang & Olufsen sees FY loss on weak pre-Xmas sales

204 replies
...

COPENHAGEN, Dec 19 (Reuters) - Danish luxury stereo and television maker Bang & Olufsen (BOb.CO: link, , link) forecast on Friday a pretax loss in its 2008/2009 financial year as sales in its peak months of November and December did not meet expectations. B&O forecast a loss of between 260 million and 380 million Danish crowns ($50.18-$73.34 million) on sales of between 3.1 and 3.3 billion.

Shares in the company fell 10 percent in early trade to 77 crowns, while the Copenhagen exchange top-20 index was down 1 percent.

 

Quite sad, if you see in the Quote the drop the share has made over the past year. From 490 to about 74 now. Hard to belief they where trading at 10 times the current value only 1,5 year ago...

Straingly enough, the Beta is relatively low. Probably due to the number of share available.

Personally, I expect them to drop even further in the next couple of months as more and more of there retailers in their core markets will be hit. Can they become profitable (even at a lower level) again and still keep track with the markets they are operating in?  Time will tell.

 

It sure is sad, but Beo has probably done this to themselves.

 

What I see is a company that has gone up price-wise since I got my first Beo in -96, by hundreds of percent.

Back in -96 it was rather easy to put up a complete audio and visual B&O system. The music systems has stayed pretty much the same price, except for introducing some very high-end speakers such as the Beolab5's, which I don't believe are overpriced.

Looking at the TV systems, I can barely believe Beo to sell any at all. The prices are rediculus.

Sure there are always people with too much money, but for the middle class, that used to have to financial power to buy a Beo TV, let's say an Avant, can only dream of buying a top of the line Beo TV today. It will cost as much as a second car to the family, or perhaps even more.

Putting a 10X extra price increase on a flatscreen TV is beyond my comprehension. I understand there must be price increases for the brand name itself, beolink, active speakers, contrast screens etc. Small production volumes and high-quality materials.  

So Beo has gone, for being achievable for the general public at some level, to only being a millionaires mark.

The world seemed over populated with newly made millionaires still 3 months ago.

I'm using 1996 now as an example, so 1 euro on 1996 isn't 1 euro 2008, the moneys worth has changed. But not by as much as one would think.

I found a tablet over Finlands situation, and the exponential is only 1,13X up to 2004, speculating one could think it could be 1,17-1,20X today.

In my eyes B&O is getting too expensive. 

I don't think Beos price politics is the only reason for them making a negative result, but obviously they are in trouble and there's not enough people with money to buy B&O. 

This thread looks like it will go the same way as many others - B&O is pricing itself out of the market.

 Well, the prices are certainly high but is B&O really suffering more than Sony and the like? Or the carmakers? B&O certainly has to look to be more efficient and they will certainly see sales suffer as the economy declines. But the solution is not to cut the price. You will not tempt a buyer from Sony or Panasonic to B&O because you've cut the premium to 400% rather than 800%.

And what about all the B&O owners who see the residual value of their equipment crash. Many B&O buyers justify the initial investment because of the strong residual or "trade in" values.

B&O is a premium brand that carries a premium price - rather like a Rolex or TAG watch. There's no such thing as a discounted premium brand.

Only the guys at the top can plan the way forward for B&O, I think it's a very, very difficult job!  We can argue, and have many times (sometimes quite heatedly at that), about price, specifications and value but the sad fact is that over the last 8 or so years the pace of technological advance has spiralled out of B&O's reach and they have struggled (with a few notable exceptions) to release relevant products. It's difficult to see things changing in the coming years. Allied to this the longevity, upgradability and residual value of the product is now questionable (BV7 MKI anybody?).

The next few years will be very interesting as the new CEO's masterplan unfolds.

just wanted to note one thing, the prices of b&o/dealer has steadily increased... every 3 months theres a little price increase by my dealer.

Thats not going to save them nessesarily... offers offers and offers is what works. I just received my BL2 and another BC2 and got a serenata for free... Plus 5 years warrenty

i'm not interested in freebies or offers or even cut prices

i am however interested in buying something that should be at the very least if not cutting edge somewhere approaching relevancy

the truth is is that bno's video products are very out of date and over priced for what you get

no way is a bv9 worth over 5+ x a prioneer kuro

in the uk a 50" kuro - level 10 screen is £2,500 , a bv9 is £15,000 for an old screen and old technology  , it doesn't even have a twin tuner recorder !

Fair... but also I rather have a TV that I get amazing quality from and enjoy using it.

We all agree that all B&O TVs produce excellent frames and quality. The built in DTV decoder of the BV7-40 is amazing. I must say.

All in all I am extremely happy with it... now two twin recorders builtin to a TV I think is over kill. We are not going to be able to stop with demands.

That it is over priced, it is... im not arguing there, that the technology is not the latest, agree again... but the thing looks great and i love it. Even if you get the kuro, youll want to replace it every year or so... 

My serene is a great example, its the simplest phone, call text and nothing else! Well, except that pimp motor. Anyway, when people see the motorised screen work, they get impressed, then either ask: how much it cost, or what brand is it (if they have it in their hands, i usually hear... "Ohh, Its a Samsung" moments later) aaaaannyyywayy..

The fact is that its impressed them (although this isnt the motive) and they ask no more questions. It impresses them more than the iphone... funny expirience i had once... With the same logic, when you turn your TV on, are you happy with the quality... i am for sure. so its all done for me, personally.

If however i was a "videophile" or whatever they call them, then i would get picky. If the picture quality was rubbish and still the asking price was 15K, ok, thats still rubbish, but its not the case. What B&O need to work on is the inexcusable things like no HDMI on the 7-32... Stupidity like that should cause riots within us, eventually leading to the thrashing of the b&o HQs if it carries on!

...
or
BeoWorld Gold Membership card
Join BeoWorld

Register to access the forums, reference material, and exclusive member benefits — including our monthly prize draw.

Become a Member

December 2026 Prize Draw

Gold Members Only

As a Gold member you're automatically entered into our exclusive prize draw — your chance to win iconic Bang & Olufsen products. A unique benefit of BeoWorld Gold membership, every draw brings a new opportunity to win something special.