Microsoft posts $3.2bn loss in second quarter

Microsoft posts $3.2bn loss in second quarter

Microsoft has announced a net loss of $3.2bn (£2.1bn), following a substantial writedown on the value of its smartphone business.

Earlier in July, the computing giant had unveiled a $7.5bn (£4.8bn) charge relating to the smartphone enterprise it had acquired from Nokia.

Traditionally a software maker, the write-off has been seen as a decisive moment for Microsoft - which effectively admitted defeat in its attempt to become a major player in the smartphone market, alongside Samsung and Apple.

The corporation was further hit by a wave of job cuts, and disappointing levels of demand for its Windows operating system.

In comparison, Microsoft had reported net income of $4.6bn (£2.9bn at today's exchange rate) for the same period last year.

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