Meizu Temporarily Changes Its CEO, Huang Zhang: Can It Bring A Turnaround?

Feb 08, 2021 News

Meizu Temporarily Changes Its CEO, Huang Zhang: Can It Bring A Turnaround?

Recently, Meizu issued a letter to all its employees. The content of the letter enlightens that Meizu has changed its CEO. The new CEO is Huang Zhang’s younger brother Huang Zhipan. This announcement by Meizu also hints the changes in its future plans.

Although Huang Zhipan took over the position of Meizu’s CEO, there were many rumors about Meizu’s “family business” on the Internet, but Huang Zhang also refuted this statement on the forum. From Huang Zhang’s remarks, we can see that Huang Zhipan, as a veteran who has followed Meizu's business for many years, and he also has sufficient capabilities to justify his role as a CEO.

According to a source, Huang Zhipan is the legal representative of three companies and has served as a director. Most of his appointments start in 2020. Based on this, it is inferred that Huang Zhipan’s pace of being in charge of Meizu was began in 2020 or even earlier.

Xiao Lei believes that Meizu 17 is Meizu’s “Return to Rationality”. From a high-cost full screen to a micro-perforated screen, large batteries and fast charging will allow Meizu flagship to achieve both practicality and controlled cost.

Previously, Meizu had announced that Meizu’s Snapdragon 888 flagship would come out this spring. The well-known blogger @digitalchatstation has exposed an important information about Meizu 18 and made a prediction on its specific parameters. Assuming that Meizu 18 can be launched as scheduled, and as compared to the 16 and 17 series, Meizu 18 will not miss its launching deadline.

The release schedule of Meizu 18 means that Meizu has now a better control on the supply chain as compare to last two years. Although according to CINNO's statistics, Meizu's market share in China was lower than the last year.

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In addition to the hot sales of Meizu 17, the reduction of Meizu's production line may also become an important reason for Meizu's profitability. Compared with the full price coverage of the four models in 2019, Meizu in 2020 had focused more on the production of mid-to-high-end models and launch a "bucket machine" like Meizu 17. Although it is less unique, this also reduces the room for mistakes.

Xiao Lei believes that as compared to mobile phones, the main profit of Meizu should be IoT and smart home devices, which have higher profit margins than mobile phones. Previously, Yang Yan, the former head of Meizu's hardware division, said that accessories have become one of Meizu's main profitable departments. This is also a prominent reason why Meizu continues to launch TWS, smart watches and other devices.

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In 2021, Meizu will cooperate with Suning to open more than 300 service outlets and add an original service center in Suning logistics base. Meizu also recently stated that the Meizu 17 series will officially enter the JD Home Daxing Airport store. In terms of services, Meizu no longer fights alone, and has begun to consciously rely on channels for growth.

Huang Zhang's temporary exit

In the past two years, most domestic brand resources have been converging. For example, at OnePlus, first Liu Zuohu became the senior vice president of OPPO, integrating the product lines and offline resources of OnePlus and OPPO, and then merging the R&D teams of OnePlus and OPPO, gathering talents to make the team more focused. In addition to OPPO, Vivo have adjusted the company's structure, integrating the originally scattered resources into several major sectors.

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Meizu is undoubtedly a late learner. While OVM was tightening his fists, Meizu revealed the brain drain incident one after another. In the process of Huang Zhang regaining control of Meizu and adjusting the structure of Meizu, the "Meizu Three Musketeers" Li Nan resigned, and Yang Yan was marginalized. There were even hands-on disturbances during the team adjustment process. After structural adjustments, nearly half of Meizu's management are relatives of Huang Zhang, and the notoriety of "family business" has spread like wildfire.

According to the few previous media reports, Huang Zhipan is responsible for the supply chain part, and the name of the "bucket machine" of Meizu 17 cannot be separated from Huang Zhipan's help. As the person in charge of the supply chain, Huang Zhipan must be very sensitive to costs, and he may have played a very important role in the product design of Meizu 17.

In addition to the product itself, Huang Zhipan is also more suitable to act as Meizu CEO in public relations. Compared with Huang Zhang's reluctance to show his face, Huang Zhipan obviously pays more attention to the corporate image. In the New Year Special, on February 6, Huang Zhipan took the initiative to walk to the front desk to promote the cooperation between Meizu and Qualcomm to the audience, and hinted that future wearable devices will use Qualcomm chips, which is more positive than the image of Huang Zhang.

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Although at first glance, Meizu has lost the craftsmanship, but Huang Zhipan's coming to power may not represent Huang Zhang's exit. Today, Huang Zhang is still a major shareholder of Meizu Technology, and his right to speak within Meizu is unlikely to be low. Perhaps in the future, we will see Huang Zhang as the CEO again and stage a comeback.

But no matter what, Meizu now intends to completely withdraw from "small and beautiful" and begin to regroup and compete with the flagships. Today's mobile phone market may still need "heterogeneous" approach like Meizu to stir the trend.

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