Acer Founder Stan Shih Swoops in to Save His Company

In the same way Steve Jobs (News - Alert) came back to save Apple, Stan Shih hopes to resurrect the ailing company that he founded in 1976.

Acer (News - Alert) hit its high point in 2009, when it surpassed Dell and HP to become the world's largest maker of notebook computers. However, the mobile revolution has left Acer in the dust. The company placed losing bets on both Windows 8 and Ultrabooks, and neither could offset declining notebook sales.

Both Acer's president, Jim Wong, and its CEO, J.T. Wang, resigned amidst reports that Acer's revenue had dropped 17 percent between January and September of this year. In an unusual move, Acer will scrap the CEO position and have Shih in both the chairman and president roles. The move is explained as an attempt to improve decision-making efficiency.

Acer co-founder George Huang will join Shih, and the company plans to form a search committee to find suitable executive replacements while Wang and Wong remain on the payroll as transition advisors. Acer's stock price rose 5.3 percent as investors celebrated Shih's return.

Shih retired nine years ago and is 69 years old. "Due to the situation that now faces Acer and my personal social responsibilities, I must stand up and take the reins without salary," Shih said in a statement. According to the Commercial Times, Shih may stay on as interim president of Acer until June 2014.

IDC (News - Alert) analyst Bryan Ma told PC World that Acer not only failed to catch on to the importance of mobile but also failed to market its desktop and notebook computers to enterprise customers. "Acer didn’t really have the commercial PC business to protect itself. That’s why it was hit harder," Ma explained.

Acer has produced some tablets, like the Iconia W4 and the Iconia B, but the bargain basement prices haven't boosted falling revenues. Some analysts suggest that Acer should mimic Dell (News - Alert)'s enterprise strategy, which has been to mix products with a range of services. Other suggest that Acer should move more into the high-end market.