George Zhao, Chief Govt Officer of Chinese language client electronics model Honor, smiles as he reveals the brand new Honor Magic 6 Professional smartphones throughout a presentation on the eve of the Cell World Congress (MWC), the telecom business’s largest annual gathering, in Barcelona on February 25, 2024.
Pau Barrena | Afp | Getty Photos
George Zhao, the chief government of Chinese language smartphone agency Honor, has resigned from his place attributable to private causes, the corporate stated on Friday.
“The corporate and the Board of Administrators sincerely admire Mr Zhao’s excellent contributions to the corporate throughout his tenure,” Honor stated in a press release.
Jian Li, who’s been at Honor for 4 years in numerous senior administration positions, will succeed Zhao as CEO.
In an inner memo posted by Chinese language media and confirmed as correct by an Honor spokesperson, Zhao stated he was stepping down attributable to well being causes and deliberate to relaxation, get well and spend extra time along with his household.
Zhao known as the choice to go away Honor “probably the most tough determination” he has ever made.
Honor was spun off from Chinese language telecommunications large Huawei in 2020 in a bid to keep away from U.S. sanctions that have been crippling Huawei’s smartphone enterprise.
Beneath Zhao’s management, Honor has aggressively launched smartphones with a give attention to worldwide markets. Zhao targeted on high-end gadgets, together with foldable smartphones, as he appeared for Honor to look past China and problem the likes of Samsung and Apple.
Honor’s market share in China has risen from 9.8% in 2020 to over 15% in 2024, in line with Counterpoint Analysis. Outdoors of China, Honor’s market share hit 2.3% in 2024, in comparison with below 1% in 2020.
The corporate has appeared to maintain tempo with rivals by launching artificial intelligence options on its gadget.
Neil Shah, companion at Counterpoint Analysis, stated the corporate’s give attention to high-end gadgets and expertise is prone to proceed below the brand new management.
“Honor’s give attention to premiumization ought to proceed if the model desires to proceed constructing its model fairness and differentiation level vs current opponents, particularly in premium markets similar to Europe,” Shah instructed CNBC.
“The give attention to progressive foldable designs and superior AI options and shut partnerships with main part suppliers could be key.”
Zhao’s successor Li shall be tasked with attempting to increase Honor’s presence abroad amid fierce competitors, with a give attention to making the model extra recognizable.
“Many do not know Honor” exterior of China, Counterpoint’s Shah stated. “Constructing model fairness is hard and the corporate wants extra time, cash and differentiation factors.”
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