At the dawn of the new year, the departure of Honor CEO Zhao Ming has garnered significant attention from the outside world. Amidst a series of twists and turns, including rumors, denials, and official announcements, Zhao Ming has confirmed his departure from Honor.

This afternoon, Zhao Ming posted on the company's internal network, candidly stating that choosing to let go of Honor was the most challenging decision of his life. From assuming the role of Honor President in 2015 to serving as CEO of the newly independent Honor in November 2020, he led the Honor team for nearly a decade. "Over the past 10 years, I've been walking on a tightrope, rarely experiencing the joy of success. I've always been preoccupied with how to guide the team through survival and excellence."

Honor also shared two crucial pieces of information: Firstly, Zhao Ming's shares remain in the company, indicating his continued interest in Honor; secondly, his future plans involve recuperation and study, suggesting he won't return to his former employer, Huawei. Earlier, some media outlets reported that Zhao Ming resigned as CEO due to health concerns, with former Huawei executive Li Jian succeeding him. Undoubtedly, Zhao Ming's departure is a significant loss for Honor, particularly in marketing, as it loses a well-known figure. He is an indispensable soul deeply intertwined with the brand, contributing to numerous iconic launch events.

While health and family issues are common reasons cited for senior executive resignations, they often serve as euphemisms. Initially, I thought Zhao Ming's departure from Honor due to health reasons fell into this category. After all, at the Honor Magic 7 RSR Porsche Design launch event in late December, he appeared energetic and showed no signs of illness. How could issues arise so suddenly?

Facts have proven my assumptions wrong. Zhao Ming revealed that over the past decade, many of his Honor colleagues have nicknamed him "Iron Man." This prolonged, high-intensity work has left numerous abnormalities on his medical examination reports. In the future, he plans to adjust and repair his overworked body. In simpler terms, after leaving Honor, Zhao Ming will focus on recuperation rather than immediately embarking on a new journey. After all, health is the cornerstone of all endeavors and cannot be overstated.

This also implies that Huawei fans hoping for Zhao Ming's return to Huawei to continue his partnership with Yu Chengdong may be disappointed, at least in the short term. As for Zhao Ming's future endeavors after recovering his health, whether he will continue in the mobile phone industry or pivot to a different field like new energy vehicles, anything is possible. Let's wait and see!

Notably, Zhao Ming didn't shy away from discussing Honor's challenges on the internal network. He candidly acknowledged posts offering opinions and criticisms on the company's current situation and strategy, deeming them pertinent. "The company's four years of growth necessitate systematic solutions to some problems. It's a pity I won't lead everyone through this transformation." These issues will now become priorities for Li Jian, the new CEO of Honor.

Just as Zhao Ming has witnessed the smartphone market's fluctuations, Honor under his leadership has also experienced its share of ups and downs. Market research firm Canalys' 2024 Q4 China smartphone market shipment rankings reveal that Honor has fallen out of the top five. In contrast, in 2023 Q4, Honor ranked second. Such a drastic fluctuation within a year reflects Zhao Ming's leadership responsibility.

Canalys' 2024 China smartphone market data shows that vivo led the market with a 17% share, shipping 49.3 million units; Huawei ranked second with 46 million units, a 37% year-on-year increase; Apple, OPPO, and Honor followed, ranking third, fourth, and fifth respectively, each with a 15% market share. It's evident that whether in a single quarter or throughout the year, Honor's advantages are gradually eroding. This occurs amidst Huawei's strong comeback and increasingly fierce market competition, inadvertently exerting tremendous pressure on Honor.

This is not the end. Honor must not only strive to win in the smartphone market but also cannot afford to falter in its IPO journey, as it carries the hopes of numerous investors. The recently concluded year 2024 was a year of shareholding reform for Honor. By the end of 2024, the shareholding reform was successfully completed, and the company's name was changed from "Honor Terminal Co., Ltd." With the reform's completion, the company will promptly initiate the IPO process.

With Honor's IPO on the horizon, Zhao Ming's departure at this crucial juncture will inevitably impact investor confidence and raise questions about the company's internal power structure and operational system. To better prepare for the IPO, Honor must address investors' concerns as much as possible and deliver tangible results, namely, halting the decline and rebounding in market share. This presents a formidable challenge for Li Jian.

We wish Zhao Ming and Honor the best!