Honor, the spin-off handset brand of Huawei Technologies, implemented more management changes this week after the sudden departure of its CEO last Friday.
Following the appointment of Huawei veteran Li Jia to replace him last Friday The outgoing CEO, George Zhao Ming Respect’s management shake-up continues with a report in the China Business Journal that China’s regional chief marketing officer (CMO) Jiang Hairong has resigned.
The company’s global CMO Guo Rui will take over the role of the China region on an interim basis, according to the report. In addition, Honorable China’s head of sales, Zheng Shubao, will replace Chen Haoqian, provincial governor of eastern Jiangsu Province.
Do you have questions about the biggest topics and trends around the world? Find the answer with Knowledge of SCMPOur new platform brings you curated content, FAQs, analysis and information from our award-winning team.
Honor confirmed the changes when contacted Tuesday. A representative of the company said, “This is a standard adjustment by regional managers.”
A view of the glorious smartphone factory in Shenzhen. Photo: Handout alt=A view of the Honor smartphone factory in Shenzhen. Photo: Handout>
The latest moves are part of preparations for an initial public offering (IPO) after undergoing organizational reforms that reflect internal complexities at the company. It was announced in November 2023.
Honor’s new management team faces increasing challenges, including recovering lost ground in the domestic smartphone market and keeping the IPO on track.
In the year Honor, which will be the fourth largest smartphone maker in China by 2024 based on IDC data, saw its market share shrink amid fierce competition from rivals including former parent Huawei.
“Huawei has had a very direct impact[on prestige],” said Will Wong, senior research manager for consumer devices at IDC Asia Pacific. Although Huawei poses challenges to other domestic and foreign brands, Honor faces unique challenges due to its relationship with its former parent.
Respective Chinese goods fell 14.9 percent in the fourth quarter of last year, which was the biggest decline among five smartphone manufacturers in the period, according to IDC. It ranked fifth with a 13.7 percent share in the quarter, behind Apple, Vivo, Huawei and Xiaomi, down from 16.8 percent in the same period in 2023.
“2025 will be another challenging year, with intense competition among (smartphone makers) in the market recovery,” said Wong, adding that the new honorary CEO will play a crucial role in navigating the competition and driving the company’s growth.
However, IDC’s Wong said last year’s respectable single-digit growth in total global sales figures was “impressive” thanks to its expansion in Europe and new markets.
Veteran Huawei executive Li Jian was appointed as the honorary new CEO. Photo: Handout alt=Veteran Huawei executive Li Jian appointed as honorary new CEO. Photo: Handout>
Shenzhen Zixin New Information Technology Consortium was founded by Shenzhen Smart City Technology Development Group and counts state-owned investment firms in the southern technology hub as major shareholders.
Last October, the company announced new investors. China TelecomCICC Capital, Cornerstone Venture Capital and Shenzhen-based fund SDG. In August, Honor received undisclosed investment funding China MobileThe world’s largest mobile network operator.
Honor currently has 23 shareholders, including government investors, suppliers and other investors, according to business information platform Tianyancha.
Last month, the company said it had converted to a public limited company in line with its IPO plans. This includes changing the stock structure and adopting the Honor Device name, which will have no impact on day-to-day operations, according to the website.
