On January 17, 2025, Honor Terminal Co., Ltd. announced that the former CEO Zhao Ming was due to "physical reasons".Li Jian, a former Huawei executive, took over as CEO. This personnel change is not an isolated incident, after Zhao Ming's resignation, Honor ushered in a wave of executive changes. Jiang Hairong, CMO of HONOR China, and Zheng Shubao, Director of Sales Department of HONOR China, have both confirmed their departures, and their responsibilities will be taken over by Guo Rui, CMO of HONOR Global, and Chen Haoqian, Director of Jiangsu Province, respectively. These high-level changes show that Honor is undergoing large-scale personnel changes within Honor, covering a number of key areas such as product and marketing. China Exportsemi tries to analyze the logic behind the incident, welcome to leave a message to exchange your views.
The current situation and challenges of HONOR
Since becoming independent from Huawei in 2020, Honor has experienced a stage of rapid rise, with a market share of 18% at one point. However, since the third quarter of 2023, Honor's market share has continued to decline. According to a report by Canalys, in the fourth quarter of 2024, Honor's market share fell out of the top five in China. In addition, Honor's performance in the high-end market is also facing challenges, with its global market share of only 2%, ranking among the top five in the world, but there is still a large gap with brands such as Apple and Huawei.
Causes and effects of high-level transfusion
1. Zhao Ming's Contributions and Limitations
As the soul of HONOR, Zhao Ming led the company to rise rapidly after independence, laying the foundation for HONOR in the domestic market. However, with the intensification of market competition and the strong return of Huawei, Honor's market share began to decline. In his resignation letter, Zhao Ming mentioned that the company needs to systematically solve some problems in the future, and he regrets that he cannot continue to lead the team to complete this change.
2. Li Jian's background and expectations
The new CEO, Li Jian, joined Huawei in 2001 and has served on Huawei's Supervisory Board and has participated in a number of major strategic reforms. He has extensive experience in global operations, strategic management, and human resources, and has served as President of Huawei's West Africa Region and President of the European Region. The addition of Li Jian is seen as a key move for Honor to seek a strategic breakthrough on the eve of the IPO.
Pictured: HONOR's high-level reshuffle
A key node in the IPO
Honor completed a new round of strategic financing in October 2024, introducing strategic investors such as China Telecom and CICC Capital. The IPO is not only a key step for Honor to enter the capital market, but also an important opportunity for it to enhance its brand value and market competitiveness. However, whether the change in management will have an impact on its IPO process has become the focus of attention in the industry.
HONOR's future prospects
1. Technological innovation and product layout
Honor has always maintained a positive attitude when it comes to technological innovation, especially when it comes to AI and folding screen technology. In 2025, Honor is expected to launch a number of new products, including a new device with a 7000mAh battery, a Snapdragon 8 Ultra mid-range device, and a folding screen device. The launch of these products will help Honor enhance its competitiveness in the high-end market.
2. Globalization strategy
Jian's global background provides new opportunities for Honor's overseas expansion. In 2024, Honor's overseas sales will increase by 50%, showing its potential in the global market. The addition of Li Jian is expected to accelerate Honor's global expansion, especially in markets such as Europe, Africa and the Americas.
3. Market competition and challenges
Although Honor has made progress in technology and market layout, it still faces fierce market competition. Huawei's strong comeback, the solid performance of vivo and OPPO, and Apple's dominance in the global high-end market have all put huge pressure on Honor. In addition, Honor's declining market share in the fourth quarter of 2024 also cast a shadow over its IPO valuation.
Conclusions
Honor's high-level change is its active adjustment at the key node of intensified market competition and IPO. The resignation of Zhao Ming and the succession of Li Jian mark that HONOR has entered a new stage of development. Li Jian's global background and strategic management experience have brought new hope for the future development of Honor. However, whether Honor can achieve a magnificent IPO turn in 2025 still needs to face many challenges, including the recovery of market share, breakthroughs in technological innovation, and the promotion of globalization strategy.
In the context of increasingly fierce competition in the semiconductor industry, Honor needs to continue to make efforts in technological innovation, market layout and brand building. Li Jian's addition has brought new opportunities to Honor, but whether it can ultimately achieve its IPO goal depends on whether Honor can make substantial progress in market performance and technological breakthroughs in 2025.
