Bang & Olufsen shares fell 25 percent last week to the lowest since January 2008, with the Company now facing pressure from a host of competitors who are moving into the high end CE markets where B&O traditionally compete.
Among the players that are taking share away from B&O are fellow Danish Company Jaemo with their new high end stylish speakers, Martin Logan and brands like Pioneer in the display market. A big problem for the Company is that their products are no longer leading edge and several brands are no coying or developig a look of their own that competes head on with the Danish Company.
They are also suffering from their own retail model with B&O products sold only via B&O stores. A plan to sell Panasonic product alongside the B&O range in their stoes was droppd early last year .
B&O has cut its operating profit forecast by more than 35 percent, saying it's likely to be as low U$47 million. Sales fell in the third European quarter between November and February 2008, according to the company, whose BeoVision 7 40-inch television with DVD player costs about $20,000
