You should visit your dealer and politely request that a new telephone be supplied to you.  If the salesperson can't or won't accommodate you, then speak with the Sales Manager.  If he can't or won't assist, see the manager/owner of the store.  If all else fails, contact B&O's regional office:
Australia
Mogras (Australia) PTY Ltd,
164 Williams Road
3181 Prahran
T: +61 39 835 7700
F: +61 39 813 3705

Finally, if the problem is still not resolved, contact B&O in Struer, even calling the Chairman's office.  Run it up the ladder.  Always try to encourage the person with whom you are dealing to resolve the problem, rather than threating, not to say that you would do that.

Bang & Olufsen must resolve the problem with your telephone, especially at the price they charge for the telephone.

I have a Serene, but I must say that I haven't had any problems with it, so B&O should make sure you don't have any with yours.  Generally, I have found that a B&O dealer will try it's best to resolve an issue.  After all, why would they want a dissatisfied customer? Usually, it's just complacency, but that is when you must be the motivator.  They know, or should know, how expensive it is in terms of advertising, marketing, sales, placement, etc. to win a  new customer, when it is so much more cost effective to try and retain an existing customer, you!  Use these points in your interaction with B&O at each level.

Note:  It may take a little doing to resolve your problem, but I am pretty sure it can be done.

 Good luck!

The advantage of the serenata, is that it has ICE speaker and that you can use it as a music player, without earphones, if you are in your office or in a holel room.

If you are not going to use this feature... buy an iPhone. And by the way you can also listen to music loud on an iPhone... but sound is not good enough, the speakers is only good for voice - podcasts are fine.

p. 

Iphone or Serenata?

I would choose ...none of them!

All my music is compressed in WMA, and I won't convert everything to AAC or MP3 for the Iphone, whose sound is said to be pretty average compared to B&O's.

Besides, I don't like Itunes either. 

But I won't buy Serenata, because I can't imagine wirting an SMS with that wheel. Even dialing long numbers, as I often do when being abroad, is going to be a nightmare. And the proprietary connector upsets me.For me it should have been a 50/50 music phone, not a 90/10 music/phone concept. Even the "keys" on the product say "music" or "more", but nowhere do you see "phone", until you realize it is the same key for both..quite confusing!

iPhone or Serenata ?

Not in the same league, but I would go for the iPhone. Well designed, the bigger screen, Mac OS X & Safari inside and the tactile screen, are the elements that stimulate me to get one.

BTW, iPhone is not techologically advanced, but it looks really nice in your hand.

Guy 

I had a brief encounter today with the seranata. A very friendly salesperson gave me a quick glance in its use. It just arrived so he didnt knew all details yet. But I very much like the idea that he galantly showed me the phone. From first look on the net I didnt like the phone for several reasons. A few technical a few design wise. Some points of critic I had before touching it were turned around in a favouratable way.Like the handling. I found it very easy. The scroll disc really works fast and more important has a good feel doing it. I loved it on the table in handsfree position. Although it probably lacks a bit in picking up from a bit longer distance. I think it should be possible to have it stand on a low table and while reclining in a sofa speaking handsfree, and yet be heard in a good manner. But as said it was a quick glance it might proof to be able to overcome it with settings,....

Biggest pro I think is that it is promoted design wise from a pebble origin. And that indeed it feels simular to such pebbles. I noticed myself wanting to play with it in my hand. Which from my point of view is a good thing. 

The thing that I have still against it is the stand I dont like it. In my view the wires etc towards the stand are a disaster and the stand itself doesnt do the seranata credit.

For example everything I like about the power adapter of the beosound 2 I miss in the seranata`s adapter aka stand.

Ahwell this was my first impresion. The beo5 is already growing on me aswell, which ididnt think it would. Looked at it today and looked better the a few days back ?....;)