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George Zhao, CEO of Chinese consumer electronics brand Honor, smiles as he shows off the new Honor Magic 6 Pro smartphones at the Mobile World Congress (MWC), the biggest annual gathering of the telecommunications industry, in Barcelona in February. 25 of 2024
Through Pau | Afp | Getty Images
George Zhao, CEO of Chinese phone company Honor, has stepped down from his position 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 held various senior management positions at Honor for four years, will succeed Zhao as CEO.
In an internal statement published by Chinese media and confirmed as accurate by an Honor spokesman, Zhao said he resigned for health reasons and planned to rest, recuperate and spend more time with his family.
Zhao called the decision to leave Honor the “hardest decision” he has ever made.
The move comes when Honor wants to take out one It announced its first IPO in 2023.
Honor was divested from Chinese telecom giant Huawei in 2020 in a bid to avoid US sanctions that were hampering Huawei’s smartphone business.
Under Zhao’s guidance, Honor has done so aggressively booted phones focusing on international markets. Zhao focused on high-end devices, among others foldable smartphonesAs Honor looked to look beyond China and challenge the likes of Samsung and Apple.
According to Counterpoint Research, Honor’s market share in China has increased from 9.8% in 2020 to over 15% in 2024. Outside of China, Honor’s market share was 2.3% in 2024, down from less than 1% in 2020.
The company has sought to keep pace with its rivals putting artificial intelligence into action its device features.
Neil Shah, partner at Counterpoint Research, said the company’s focus on high-end devices and technology will likely continue under new leadership.
“Honor’s focus on premiumization should continue if the brand wants to continue building its brand equity and point of differentiation from existing competitors, especially in premium markets like Europe,” Shah told CNBC.
“A focus on innovative foldable designs and advanced AI features and close collaboration with key component suppliers would be key.”
Zhao’s successor, Li, will try to expand Honor’s presence overseas amid fierce competition, focusing on brand awareness.
“Not many people know about Honor” outside of China, said Counterpoint’s Shah. “Building brand equity is difficult and the company needs time, money and more points of differentiation.”
