Sony Ericsson has appointed Bert Nordberg as the new chief executive to help the struggling cellphone maker regain profitability and increase market share. Nordberg plans to focus on improving market share, restoring profitability, and developing successful products to achieve these goals. Nordberg, who is currently the Executive Vice President at Ericsson and leads the company's Silicon Valley business, expressed confidence in the support from both parent companies and believes that the company is close to turning a profit. Sony CEO Howard Stringer will take over as board chairman on October 15, replacing Ericsson's Carl-Henric Svanberg, who will become chairman of BP Plc in January. Analyst Neil Mawston from Strategy Analytics believes that these management changes indicate a commitment from both Sony and Ericsson to continue working together, which is good news for Sony Ericsson's employees and customers. Sony Ericsson experienced the largest drop in sales among the top five cellphone vendors in the first quarter. The company has failed to keep up with mobile phone trends such as full keyboards, Internet browsing, and navigation, leading to a decrease in market share to just 4.7 percent globally, according to research firm Gartner. Ben Wood, head of research at CCS Insight, believes that the new CEO, Nordberg, faces significant decisions in streamlining the mobile software strategy, reducing dependence on mid-tier feature phones, and restoring profitability in a challenging economic climate. While Sony Ericsson is known for its music and imaging-focused phones, it lacks a strong presence in the smartphone market. Nordberg plans to revamp the firm's product portfolio strategically. "In this sector, you require extremely successful products," he stated. Nordberg has been employed at Ericsson since 1996, after previously working 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 overall market expected to decline by at least 10 percent. "I believe this is a result of the need for a fresh start, some new perspectives. Additionally, Sony Ericsson's performance has not been particularly strong over the past year and a half," said Greger Johansson from Redeye. At 1214 GMT (8:14 a.m. EDT), Ericsson's shares were trading at 66.90 crowns, which was a 0.5 percent decrease. This performance was better than the DJ Stoxx European technology index, which was down 1.7 percent.