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Bang & Olufsen hangs up on cell phone biz

The Danish company will no longer manufacturer expensive, design-centric cell phones.

The last Bang & Olufsen cell phone Corinne Schulze/CNET Networks

Apparently even Bang & Olufsen is feeling the effects of the sour economy. The Danish company, which has a built a reputation as a purveyor of high-end electronics, is exiting the cell phone business. The Financial Times reported Wednesday that besides phones, Bang & Olufsen will also stop making DVD players and recorders in an effort to concentrate on televisions and audio equipment.

Granted, it's not a huge loss to the cell phone world. The Bang & Olufsen Serene, which the company designed two years ago with Samsung, certainly had an intriguing design. But the phone faltered in functionality and performance. It also didn't help that it cost $1,275.