BRIEF: Honor undergoes major management reshuffle
A major management reshuffle is taking place at the top levels of Honor Device Co. Ltd., as the smartphone maker spun off from Huawei lays the groundwork for an eventual IPO.
The movement began with the abrupt departure last Friday of Honor CEO George Zhao Ming, who was replaced by Huawei veteran Li Jian, the South China Morning Post reported on Wednesday. Following that change, Huawei’s CMO for the China region, Jiang Hairong, also resigned, according to the report. Honor’s China sales chief Zheng Shubao will also be replaced by Chen Haoqian, who heads the company’s operation in East China’s Jiangsu province.
Honor was once Huawei’s budget smartphone brand but got spun off in 2020 as Huawei faced growing U.S. sanctions that threatened its smartphone business. Buyers of the brand included some of its Chinese suppliers and distributors, as well as several entities tied to the city of Shenzhen where Huawei is based.
The changes are just the latest at Honor as it prepares for an eventual IPO. Last month, the company announced it had officially completed its transformation into a joint-stock limited company, a necessary step before an eventual listing. CEO Zhao previously said the company would list in China if and when it makes an IPO, but he didn’t give a specific location or timetable.
The latest executive changes come as Honor faces intense competition in its home China market, especially from its former parent Huawei. The company’s smartphone shipments in China fell 15% in last year’s fourth quarter, putting it in a tie with rival Oppo as China’s fifth largest smartphone seller with 13.7% of the market, according to IDC.
By Doug Young
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