Sony Ericsson has appointed Bert Nordberg as the new chief executive in an effort to improve the struggling cellphone maker's profitability and market share, following steep losses and a decline in market share to below 5 percent. Nordberg aims to increase market share, restore profitability, and develop popular products to revive the company's performance. Nordberg, who is 53 years old and currently serves as the Executive Vice President at Ericsson and leads the company's Silicon Valley division, expressed strong confidence in the support from both parent companies and anticipated a quick move towards profitability. Sony CEO Howard Stringer is set to take over as the new board chairman on October 15, replacing Carl-Henric Svanberg, who will assume the role of chairman at BP Plc in January. Analyst Neil Mawston from Strategy Analytics believes that these management changes indicate a commitment from Sony and Ericsson to continue their partnership, which will be reassuring for Sony Ericsson employees and customers. Sony Ericsson experienced the most significant decline in sales among the top five cellphone vendors in the first quarter. According to research firm Gartner, Sony Ericsson has fallen behind in mobile phone trends such as full keyboards, Internet browsing, and navigation, resulting in a global market share of just 4.7 percent. Ben Wood, head of research at CCS Insight, believes that new CEO Nordberg must make significant decisions to streamline the company's software strategy, reduce dependence on mid-tier feature phones, and improve profitability in a challenging economic climate. Sony Ericsson, known for music and imaging phones, has struggled to offer competitive smartphones. Nordberg plans to revamp the company's product portfolio strategically. "In this sector, successful products are essential," he stated. Nordberg has been an employee of Ericsson since 1996, having previously worked for companies such as Data General Corp. and Digital Equipment Corp. In July, Sony Ericsson reported a pre-tax loss of 283 million euros ($400 million) and predicted a challenging remainder of the year, with the market expected to contract by at least 10 percent. "I believe this is a result of the need for a fresh start, some new perspective. Additionally, Sony Ericsson's performance has been subpar over the last year and a half," noted Greger Johansson from Redeye. Ericsson's shares were down 0.5 percent at 66.90 crowns by 1214 GMT (8:14 a.m. EDT), which was better performance compared to a 1.7 percent drop in the DJ Stoxx European technology index.