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George Zhao, chief executive of Chinese consumer electronics brand Honor, smiles as he shows off the new Honor Magic 6 Pro smartphones during a presentation ahead of the Mobile World Congress (MWC), the telecommunications industry’s biggest annual gathering, in Barcelona in February. 25, 2024.
Pau Baren | Afp | Getty Images
George Zhao, chief executive of Chinese smartphone maker Honor, has resigned for personal reasons, the company said on Friday.
“The Company and the Board of Directors sincerely appreciate Mr. Zhao’s outstanding contributions to the Company during his tenure,” Honor said in a statement.
Jian Li, who has worked at Honor for four years in various management positions, will succeed Zhao as CEO.
In an internal memo published by Chinese media and confirmed as accurate by an Honor spokesman, Zhao said he was stepping down for health reasons and planned to rest, recuperate and spend more time with his family.
Zhao called the decision to leave Honor “the most difficult decision” he has ever made.
The move comes as Honor looks to commit An IPO that was first announced in 2023.
Honor was spun off from Chinese telecom giant Huawei in 2020 in a bid to avoid US sanctions that have crippled Huawei’s smartphone business.
Under Zhao Honor has aggressively launched smartphones with a focus on international markets. Zhao focused on high-end devices, including foldable smartphonesas he looked for Honor to look beyond China and challenge the likes of Samsung and Apple.
According to Counterpoint Research, Honor’s market share in China will grow from 9.8% in 2020 to more than 15% in 2024. Outside of China, Honor’s market share reached 2.3% in 2024, up from less than 1% in 2020.
The company strives to keep pace with its competitors launch of artificial intelligence features on your device.
Neil Shah, partner at Counterpoint Research, said the company’s focus on high-end devices and technology is likely to continue under new management.
“Honor needs to continue to focus on premiumization if the brand is to continue building its equity and differentiation against existing competitors, especially in premium markets like Europe,” Shah told CNBC.
“Focusing on innovative complex designs and advanced AI features, as well as close partnerships with leading component suppliers, will be key.”
Zhao Li’s successor will be tasked with trying to expand Honor’s presence overseas amid fierce competition, with a focus on making the brand more recognizable.
“A lot of people don’t know Honor” outside of China, Counterpoint’s Shah said. “Building brand equity is difficult, and a company needs more time, money and points of differentiation.”
