Bang & Olufsen

Early history

Peter Bang (1900–1957), son of Camillo Bang, a successful Danish businessman, showed great interest in radio technology from an early age. After graduating as an engineer in 1924, he spent six months working in a radio factory in the USA. When he returned to Denmark, he collaborated with his friend Svend Olufsen (1897–1949), whose parents made the attic of their manor house in Struer in Jutland available for experiments. When they officially opened their business in 1925, Bang focused on the technology while Olufsen was dealing with business. There were a number of successful developments in the 1930s and 1940s, including a sound recording system for the film industry, roof-mounted loudspeakers for circuses and army vehicles, and the iconic Beolit 39 radio that featured a Bakelite cabinet.

However, it was many years before their business became significantly profitable. The firm suffered a major setback towards the end of World War II when its factory at Gimsing was burnt down by pro-Nazi saboteurs as a punishment for the management's refusal to team up with the Germans. Undeterred, Bang and Olufsen rebuilt the factory, and they produced electric razors until 1955, and then moving on to develop a range of radio, radiogram, and television sets, that was influenced later by a designer named Ib Fabiansen who began work for the company in 1957.[4]

In the 1990s, B&O opened its dedicated stores, selling directly to customers but not selling through retailers, and the production of audio separates was discontinued in favor of mini-type audio systems sold, as was before for B&O, at a price that was higher than the industry average.

Recent history

Because of the 2008 financial crisis, the company experienced a sharp decline in sales and announced significant losses; between 2008 and 2009, annual revenue declined from $853 million to $528 million, and its stock price dropped from $52 to $8.50.[5] A restructuring plan included 300 layoffs in Denmark on 21 October 2008, and the abandonment of development of new mobile phones, MP3 players, and standalone systems like DVD2 and HDR2. Instead, the company focused on its traditional strengths: high-quality audio and video products as well as sound systems for the automotive industry.[6] B&O returned to profitability in 2010.

In January 2015, B&O revealed that the firm would consider bid approaches from competitors due to a profit warning issued at the end of 2014.[7]

In March 2015, HP Inc. announced that B&O would become the company's new premium audio partner for its computers and other devices after Beats takeover by Apple.[8]

In May 2015, Harman International announced the completion of its acquisition of Bang & Olufsen's car audio business.[9]

In March 2017, Tymphany, an audio ODM based in Hong Kong and with manufacturing operations in Dongchen, announced the acquisition of the engineering and manufacturing operation in the Czech Republic from Bang & Olufsen.[10][11]

In Aug 2017, LG announced that B&O would become the company's new premium audio partner for its mobile devices.

In January 2020, Bang & Olufsen A/S reported its third consecutive quarterly loss as the Danish hi-fi maker struggled with a buildup of inventory after consumers balked at buying $500 headphones.[12]

In 2023, Bang & Olufsen delivered a record-high gross margin and an improved EBIT margin for 2023/24 despite a decline in revenue. Group revenue was DKK 2,588m, 5% down year-on-year.[1][2]

Design

B&O has a distinctive design appeal that Wired described as "quality media delivery via striking objects".[5] Their work with radios and loudspeakers led them to value high-fidelity musical reproduction uninfluenced by technological limitations; in Danish Ærlig musikgengivelse, meaning "honest music reproduction". To this end, psychoacoustics was important to designing and testing B&O products.

By 1960, B&O had begun its foray into global markets with star designers Henning Moldenhawer and Jacob Jensen,[5] who designed 234 products for B&O from 1965 to 1985. B&O hires designers rather than directly employing them in the company.[22] David Lewis, who became involved with B&O in 1965 then went on to design most of the company's products after 1980. In 1978, the Museum of Modern Art in New York City held an exhibition dedicated to Bang & Olufsen designs.[23] It is known to give its designers a lot of free rein.[5] Bang & Olufsen has also collaborated with contemporary designers, including Benjamin Hubert,[24] Michael Anastassiades,[25] and Cecilie Manz.[26]

It also has been debated that Apple's iPod design was inspired by B&O's BeoCom 6000, a wireless telephone designed by Henrik Sørig Thomsen with a wheel to scroll.[27]