Emil Jensen wrote:

I agree on these points, and saying that the Eclipse is 2 year old, is very exaggerated.

Fair enough  - we'll call the panel 17 months old instead of 24 if it makes you feel better.

So this years LG B8 55 inch is now around 1200 GBP - thats this years model.

Yes there are higher priced models, but hand on heart most here wouldn't be able to tell the difference. There are a few more calibration options, but unless you are getting a professional to do it, those extra options are irrelevant. So the Alpha 9 vs 7 is marginally more snappy, but web OS on the Alpha 7 is plenty quick enough.

Anyway, given the mixed reception many here gave the Eclipse (felt too much like an LG etc etc), do people even want another BV ?

Or would the more popular choice be the equivalent of a Sound Centre / hub, able to integrate a wide range of 3rd party screens?

(not every screen will integrate easily though - what to do with the current Wallpaper TV speaker, i.e. messy)

re Sonos, look at their repeat business / returning customer stats....they're amazing.

From the Verge - 38% of Sonos first time buyers have follow on additional speaker purchases.

That's not to be sniffed at.

 

 

Walking away from 26% of revenues?

But the profit contribution is surely much much lower, so far easier to walk away from.

 

What does this recent ad tell us about the direction of travel?

“THE OPPORTUNITY

Do you have 3+ years of experience working with color, materials and finish, and would you like to use this experience in the design of Bang & Olufsen’s luxury lifestyle audio products? And are you looking for an opportunity to:
– Improve your CMF design skills and apply them to Bang & Olufsen products?
– Join one of the best-known luxury brands in the world?
– Gain an international network of competent and collaborative colleagues?

Join the Design team 
As our new CMF designer, you will join the Design team in Lyngby, Denmark, consisting of 6 design managers with different competencies. Together with colleagues based in Lyngby, Struer and Singapore, we participate in cross-functional projects, contributing with our product design expertise. Doing so, we work as one team to share knowledge, run design reviews and provide feedback on a weekly basis. And now, we are looking to expand our CMF team with a designer.

Implement world-class CMF across Bang & Olufsen’s luxury products
As our new CMF designer, you will work closely with our CMF manager to implement colour, materials and textures across speakers, headphones and earphones. Working with inline products, special editions as well as fashion and interior collections, you will ensure that our products live up to our CMF strategy.”

There's more... including 20 days travel to review colour samples in China......

Hi Lee, I care :-)

My first time back on here in maybe 5+ years. I was here on Beoworld in the beginning.... (2003?)  I saw this latest question about predictions for 2019....  was relieved but upset to read that all my fears are actually shared among other life long fans.... I thought I was just getting old and grumpy.  I've been turned off B&O for some time... even though my house is full of it, from the 70s +  All the modern stuff... I say all, there's not that much is there....   is just same old thing re jigged.  I mean, come on, just what is the 'Edge' all about !!!  At least the A9 had some style to it.   And the M5 biscuit tin...  not even going to bother mention anything else EXCEPT!!!  I do love a pair of S3s in stereo, now that is pretty special for the size, and my A1 which I love and take away on holiday all the time.  So it's not all bad... :-) 

Regards

Jack

ebay (beo-store-uk)

 

Sandyb wrote:

Walking away from 26% of revenues?

But the profit contribution is surely much much lower, so far easier to walk away from.

 

Folks - before we make comments like the above, please check your facts. Stuff like this on boards can impact perfectly good businesses actually doing well - like saying product categories are EOL or immaterial to their profitability.  Here is what we actually know "The gross margin for the Bang & Olufsen business unit was 45.2 per cent against 42.4 per cent in the previous financial year. The significant improvement in gross margin was driven by an overall improvement in product profitability, especially on TVs, increased income from brand partnering, and a change in product mix."

Taken from the B&O's report and account for the last financial year.

Its not all doom and gloom - in fact, there are many rays of light.

 

Evening all, first time post on here but have been avidly following the forum.

We are a Fire & Security company but have also been awarded B&O CI status.

We are also SONOS approved.

We do very little AV work but thoroughly enjoy the small works that we do get.

B&O has always been an interest for me ever since I saw the stunning BS9000 and a friends green TV with a slot for a video tape that moved on its stand!

Plans for 2019? Well, from my experience with both SONOS and B&O the customer loves the sound and look of B&O but cannot justify the price gap.

One major selling point for B&O over the rest is the fact they also do TV but now this is no longer?

Another issue is reliability, for the money the kit should be flawless, it is not.... BS2 doing the double network beep every hour or so anyone??

Multiroom from SONOS has the odd issue but support has been fantastic and the APP is extremely easy to use, the same cannot be said about B&O. I know a SW update is on its way to rectify this but it should be sorted much quicker than it has.

Respect has to be given to the brand and the dealerships as it is a small company in comparison to others yet produces products like no other.

Brand awareness however is very poor. 100% of clients are aware of or have had Bose and SONOS yet no one has heard of Beoplay. Some know of B&O of years ago and are always amazed when I tell the you can get a BT speaker for under £200.

PaulGiles wrote:

One major selling point for B&O over the rest is the fact they also do TV but now this is no longer?

See what I mean!!!!

B&O are still in the TV business!!! The Eclipse is one of their best products ever!!!! 

Hang on - that says nothing about the actual contribution that TV's make to the top level gross margin, nor the actual margin on their BV's.

Mass scale TV manufacturers make margins in the region of 10-14%, and they have the benefits of scale. LG recently reported a record margin on TV's of 14%, and Sony's equivalent is between 10-11%.

My dealer has continually told me that from what he learns from B&O, the company makes a pretty slim margin on their BV's. Whether that has improved a bit is unlikely to change this picture materially. He has a long relationship with the company.

So I stick to the original point - share of sales and of profit are likely very different.

Reading through the 2015 annual report, I'm struck by a note they make - overall margin was adversely impacted by a higher share of TV sales in the mix.

If that doesn't suggest that their TV's are not what drives their margin, well I don't quite know what other indication one would need.

Anyway, despite all of this, and despite all the mood music, they make in the end make more BV's if they decide they are necessary - though the direction of travel suggests its real risk they move away.