Sony Ericsson chief to step down

Loss-making handset maker Sony Ericsson said today chief executive Dick Komiyama would retire at the end of the year, with Ericsson…

Loss-making handset maker Sony Ericsson said today chief executive Dick Komiyama would retire at the end of the year, with Ericsson executive Bert Nordberg to take the helm from October 15th.

The firm also said Sony CEO Howard Stringer would become new board chairman on the same day, replacing Ericsson head Carl-Henric Svanberg, who will become chairman of BP in January.

"Bert Nordberg has a strong track-record in the area of business realignment and was instrumental in the transformation of Ericsson in the years 2002-2003," Svanberg said in a statement.

"I am confident he will be able to build upon the foundation Dick has created and lead the final stages of Sony Ericsson's transformation," he said.

Large losses at Sony Ericsson have sparked market speculation of a possible breakup of the 50-50 venture, but Sony and Ericsson have said they are committed to the operation and could inject more money into it if necessary.

In July Sony Ericsson posted a pretax loss of €283 million ($400 million), and said the rest of the year would be difficult, with the overall market to shrink at least 10 per cent.

Of the top five mobile phone vendors, Sony Ericsson saw the sharpest drop in sales from the first quarter. The firm has missed trends like full keyboards, Internet browsing and navigation, and research firm Gartner said last week its market share fell to just 4.7 per cent globally.

Reuters