Honor’s Leadership Shake-Up Amidst IPO Preparations and Fierce Competition
As the world’s largest smartphone market continues to heat up, Honor, the spin-off handset brand from Huawei Technologies, is undergoing significant management changes. Following the sudden departure of its CEO, George Zhao Ming, last Friday, the company has appointed Huawei veteran Li Jian as his replacement. This move is part of Honor’s preparations for a public listing, which was announced in November 2023.
New Challenges Ahead for Honor’s Management Team
The latest departures, including the resignation of Chief Marketing Officer (CMO) for the China region, Jiang Hairong, reflect the internal complexities within the company. Honor’s new management team, led by Li Jian, will face mounting challenges, including recovering lost ground in the local smartphone market and putting its IPO on track.
Cutthroat Competition in China’s Smartphone Market
Honor, currently the fourth largest smartphone maker in China, has seen its market share shrink amid intense competition from rivals, including its former parent, Huawei. According to IDC data, Honor’s China shipments fell 14.9% year on year in the fourth quarter last year, the biggest drop among the top five smartphone makers in the period.
International Expansion Offers a Glimmer of Hope
Despite the challenges in its home market, Honor has achieved impressive single-digit growth last year, thanks to its expansion in Europe and emerging markets. The company has continued its international expansion, announcing plans to launch more than 30 products in Indonesia in 2025.
A Brief History of Honor
In 2020, Huawei sold its sub-brand Honor to a consortium of more than 30 agents and dealers to protect that business from sanctions. The consortium, Shenzhen Zhixin New Information Technology, was founded by Shenzhen Smart City Technology Development Group, which counts state-owned investment firms in the southern tech hub as its main shareholders.
New Investors and Shareholding Structure
In 2023, Honor recruited Wu Hui, a veteran state-owned enterprise executive, to take over as chairman of the board. The company has also received investment funding from China Mobile, China Telecom, CICC Capital, Cornerstone Venture Capital, and Shenzhen-based fund SDG, among others. Last month, Honor transformed into a joint-stock limited company, adopting the name Honor Device, as it proceeds further along with its IPO plans.
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