George Zhao, Chief Executive Officer of Chinese consumer electronics brand Honor, smiles as he shows the new Honor Magic 6 Pro smartphones during a presentation on the eve of the Mobile World Congress (MWC), the telecom industry’s biggest annual gathering, in Barcelona on February 25, 2024.
Pau Barrena | Afp | Getty Images
George Zhao, the chief executive of Chinese smartphone firm Honor, has resigned from his position due to 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’s been at Honor for four years in various senior management positions, will succeed Zhao as CEO.
In an internal memo posted by Chinese media and confirmed as accurate by an Honor spokesperson, Zhao said he was stepping down due to health reasons and planned to rest, recover and spend more time with his family.
Zhao called the decision to leave Honor “the most difficult decision” he has ever made.
Honor was spun off from Chinese telecommunications giant Huawei in 2020 in a bid to avoid U.S. sanctions that were crippling Huawei’s smartphone business.
Under Zhao’s leadership, Honor has aggressively launched smartphones with a focus on international markets. Zhao focused on high-end devices, including foldable smartphones, as he looked for Honor to look beyond China and challenge the likes of Samsung and Apple.
Honor’s market share in China has risen from 9.8% in 2020 to over 15% in 2024, according to Counterpoint Research. Outside of China, Honor’s market share hit 2.3% in 2024, compared to under 1% in 2020.
The company has looked to keep pace with rivals by launching artificial intelligence features on its device.
Neil Shah, partner at Counterpoint Research, said the company’s focus on high-end devices and technology is likely to continue under the new leadership.
“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 told 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 be tasked with trying to expand Honor’s presence overseas amid fierce competition, with a focus on making the brand more recognizable.
“Many don’t know Honor” outside of China, Counterpoint’s Shah said. “Building brand equity is tough and the company needs more time, money and differentiation points.”