The restructuring is Acer's second in as many years. Dell Computer Corp. This is not a new issue, but given Acer's tanking stock, Shih says he has no choice but to break the company in two.
Analysts are skeptical, in part, because the restructuring appears to be largely cosmetic.
Besides, Shih's previous restructuring was hardly a resounding success. Two years ago, he split Acer into five units that put computer manufacturing, distribution, peripherals manufacturing, software development, and digital services in the hands of individual chiefs. Shih's idea was to smash the traditional centralized Chinese business model. Trouble was, Shih didn't properly implement what amounted to a revolution in Acer's corporate culture. Instead, he went into semiretirement, focusing on pet projects, including Aspire Park, an information technology research foundation in suburban Taipei.