How much did the sales of all makes of desktop machines drop in the third quarter?

Sales of all makes of desktop machines dropped 46.8 percent in the third quarter, compared with last year, prompting aggressive sales promotions by Compaq during the holiday season. Analysts say that despite Compaq’s higher prices, its strong brand recognition in Brazil will continue to pose a formidable challenge to Metron and other would be rivals. "As soon as Compaq is able to adjust its business model to reach the mass of the population through national supermarket chains, marketing campaigns and so on, they should be able to restart growth," said Waldir Arevolo, senior research analyst at the Gartner group in Brazil. Despite subsidized programs like the computer from the million, the biggest obstacle to rising computer sales in Brazil is still household income. According to a study by the Brazilian Electronics Industry Association, 15 million Brazilian households are interested in having a computer, but they can only afford a monthly payment, including the price of Internet service.
     Mr. Fernandes said monthly payments that low could be reached only if the government lowered interest rates and increased incentives for international producers of chips and other components to set up shop locally. He said he hoped such steps might be in the offing, as politicians seek popular programs before the presidential election in October.