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Bang & Olufsen cut costs, and hifi lineup

As the credit crunch bites, Bang & Olufsen, developers of bespoke expensive hifi systems have laid out a new strategy for the future. The meat of the proposal suggests a cutting of costs, and products.

The first product to be axed is a collaboration cellphone with Samsung, named "Serenata". The B&O CEO said this will bring a close to any future collaborated projects.

Two other products to face the chop are a hard drive dvd recorder and player. The focus in the future, according to a press release, is to concentrate all B&O's efforts on a core portfolio of products.

Total sales and revenue are predicted to diminish in the upcoming couple of years, with high end products expecting to be harder hit than budget system and separates.

One recent money spinner for B&O is the creation of in-car audio systems for luxury sedan and performance automobiles.

Even though new car production is expected to contract as well, it appears B&O are not prepared to withdraw their grip on this market sector. Likewise, their Beo-Living home integration project will also continue.

Bang & Olufsen will also begin an expansive strategy of growth in Chinese and Russian markets. This could see the total number of B&O retail outlets stay around one thousand and two hundred.

Sadly this will not help save three hundred jobs (out of twenty five hundred), which will save over sixteen million pounds and bring B&O's finances back into the black.

A new product is set to be released at the beginning of November 08. No hints or clues have suggested what the product will be. Whether a new BeoSound, BeoCenter, BeoCom, BeoLab or BeoVision will be unveiled is the question.

What B&O are promising is a completely unique design that will combine supreme sound and build quality and workmanship.