Claiming to combine "superb sound quality with cutting edge mobile phone technology", the Serenata follows the previously launched Serene collaboration from the two companies.

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The music focus is showcased through the built-in stereo loudspeaker system which boasts start-of-the-art technology that claims to deliver hi-fi quality sound.

The phone can store up to 1,000 MP3 tracks in its 4GB, plus 25MB of memory, and can handle AAC and WMA audio tracks too. The phone's high resolution also enables it to display album artwork, B&O says.

3.5G iPhone beater
One unique feature of the Serenata is that it contains high quality stereo loudspeakers, or can be used with Bang & Olufsen's own EarSet 3 in-ear headphones. Battery life during playback-only use is 13 hours (headphones) or five hours (built-in loudspeakers). Regular standby time is 280 hours, while talk-time is pegged at three hours.

The Serenata - unlike the Apple iPhone - is 3.5G (HSDPA) ready and has quad-band GSM support. It also includes Bluetooth and USB 2.0 connections.

Pricing and availability to be announced.