George Zhao, Prominent Government Officer of Chinese language shopper electronics emblem Honor, smiles as he displays the unutilized Honor Witchcraft 6 Professional smartphones all through a presentation at the eve of the Cellular Global Congress (MWC), the telecom business’s largest annual amassing, in Barcelona on February 25, 2024.
Pau Barrena | Afp | Getty Pictures
George Zhao, the important govt of Chinese language smartphone company Honor, has resigned from his place because of non-public causes, the corporate mentioned on Friday.
“The company and the Board of Directors sincerely appreciate Mr Zhao’s outstanding contributions to the company during his tenure,” Honor mentioned in a commentary.
Jian Li, who’s been at Honor for 4 years in diverse senior control positions, will be triumphant Zhao as CEO.
In an inner memo posted via Chinese language media and showed as correct via an Honor spokesperson, Zhao mentioned he used to be stepping unwell because of condition causes and deliberate to extra, get well and spend extra age along with his population.
Zhao known as the verdict to let go Honor “the most difficult decision” he has ever made.
Honor used to be spun off from Chinese language telecommunications gigantic Huawei in 2020 in a bid to keep away from U.S. sanctions that have been crippling Huawei’s smartphone industry.
Underneath Zhao’s management, Honor has aggressively introduced smartphones with a focal point on global markets. Zhao thinking about high-end gadgets, together with foldable smartphones, as he appeared for Honor to appear past China and problem the likes of Samsung and Apple.
Honor’s marketplace proportion in China has risen from 9.8% in 2020 to over 15% in 2024, in step with Counterpoint Analysis. Outdoor of China, Honor’s marketplace proportion collision 2.3% in 2024, in comparison to underneath 1% in 2020.
The corporate has appeared to retain life with competitors via launching synthetic prudence options on its instrument.
Neil Shah, spouse at Counterpoint Analysis, mentioned the corporate’s focal point on high-end gadgets and era is more likely to proceed underneath the unutilized management.
“Honor’s focus on premiumization should continue if the brand wants to continue building its brand equity and differentiation point vs existing competitors, especially in premium markets such as Europe,” Shah informed CNBC.
“The focus on innovative foldable designs and advanced AI features and close partnerships with leading component suppliers would be key.”
Zhao’s successor Li will likely be tasked with seeking to make bigger Honor’s presence out of the country amid fierce pageant, with a focal point on making the emblem extra recognizable.
“Many don’t know Honor” out of doors of China, Counterpoint’s Shah mentioned. “Building brand equity is tough and the company needs more time, money and differentiation points.”
