Mobile handset maker Sony Ericsson said on Tuesday its president, Miles Flint, would step down and would be succeeded by Sony Electronics USA Chairman Hideki "Dick" Komiyama as of November 1.
Flint's resignation came as a surprise to analysts, who applauded his performance but highlighted the challenge his successor will face as the firm tries to stay profitable while stealing market share from entrenched rivals.
"He has done a very good job because of the market share gains and the profitability that Sony Ericsson has achieved," said Kulbinder Garcha, analyst at Credit Suisse in London. Analysts said Flint had in no sense had been forced out, as the company's owners were pleased with what he had achieved.
Komiyama, Flint's successor, is also executive vice president of electronics marketing and sales strategies for Sony Corp, the Swedish-Japanese 50-50 venture said. Flint said in a statement he wanted to develop new personal and business opportunities after nearly 17 years at Sony and Sony Ericsson. "I believe that, together, we have in place very firm foundations for the next phase of Sony Ericsson's growth, and I wish Dick Komiyama every success in his new role," Flint said.
Flint joined Sony Ericsson from Sony Europe in June 2004. Under his leadership, the company rose to number four in the global mobile handset industry, Sony Ericsson said. In the second quarter, the firm reported a 55 percent jump in quarterly profits to 327 million euros ($446 million), although that missed market expectations.