George Zhao, the chief executive of the Chinese smartphone firm Honor, has announced his resignation due to personal reasons. He described the decision as “the most difficult decision” he has ever made, citing health concerns and a desire to spend more time with his family. Zhao’s resignation marks the end of a pivotal era for Honor, which saw significant growth under his leadership. Jian Li, who has served in various senior management roles at the company for four years, will succeed Zhao as CEO.
Zhao’s tenure at Honor was marked by an aggressive international expansion strategy. Since its spin-off from Huawei in 2020 to circumvent U.S. sanctions, Honor has increased its market share both in China and internationally. In China, Honor’s market share rose from 9.8% in 2020 to over 15% in 2024, according to Counterpoint Research. Internationally, the brand’s market share climbed to 2.3% in 2024 from below 1% in 2020. Zhao’s focus on high-end devices, including foldable smartphones, aimed to position Honor as a competitor against industry giants like Samsung and Apple.
“The company and the Board of Directors sincerely appreciate Mr Zhao’s outstanding contributions to the company during his tenure.” – Honor
Jian Li is set to continue Zhao’s strategic direction by focusing on premium devices and expanding Honor’s presence overseas. The company aims to boost its brand recognition outside of China, where it remains less known. Li’s leadership comes at a crucial time as Honor looks to execute an Initial Public Offering (IPO), first announced in 2023. His task will involve enhancing Honor’s international profile amid fierce competition.
“Building brand equity is tough and the company needs more time, money and differentiation points.” – Neil Shah, partner at Counterpoint Research
“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” – Neil Shah, partner at Counterpoint Research
Li is expected to focus on innovative technologies such as foldable designs and advanced AI features. Building strong partnerships with leading component suppliers will be key to maintaining Honor’s competitive edge.
“The focus on innovative foldable designs and advanced AI features and close partnerships with leading component suppliers would be key.” – Neil Shah, partner at Counterpoint Research
What The Author Thinks
George Zhao’s departure marks a significant transition for Honor as it seeks to consolidate its gains in a fiercely competitive market. Under Zhao’s leadership, Honor not only navigated challenging geopolitical landscapes but also positioned itself as a significant player in the global smartphone market. Jian Li’s appointment signals continuity and a commitment to innovation, but he faces the daunting task of building global brand equity in markets dominated by established players. The strategic focus on premium products and innovative technology under Li’s leadership could well dictate Honor’s trajectory in the coming years.
Featured image credit: Kārlis Dambrāns via Flickr
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Source: https://digitalmarketreports.com/news/32948/honor-ceo-george-zhao-steps-down-successor-named/