By Jonathan Davies

Microsoft has reported losses of $3.2 billion for the three months to the end of June after incurring $8.4bn charges on writedowns.

Earlier this month, Microsoft announced that it faced a $7.5bn to writedown the value of Nokia.

Revenues dropped 5% to $22.18bn. Market experts said demand for the Windows operating system was weak during the quarter. Customers have been put off purchasing new laptops and tablet devices with the new Windows 10 operating system just around the corner.

Satya Nadella, chief executive, said: "Our approach to investing in areas where we have differentiation and opportunity is paying off with Surface, Xbox, Bing, Office 365, Azure and Dynamics CRM Online all growing by at least double-digits. The upcoming release of Windows 10 will create new opportunities for Microsoft and our ecosystem."