NEW YORK ( TheStreet) -- Here's the operative thought: Nokia's (NOK - Get Report) business is becoming unstitched faster than anyone imagined. The Finnish phone maker, which is getting trounced by Apple (AAPL) and Google (GOOG), announced plans yesterday for 10,000 firings, about a fifth of their employee base, as well as management changes.
They also cut earnings estimates. Again. You got that? Again. As in: for the second time in nine weeks. That's a rarity -- and an essential indicator.
But to most of the media, it's just another cut. Same old, same old. Forbes mentions the second quarter cut in both their headline and second sentence, but never mentions the fact that this is a double-dip cut. The Associated Press touched its toe in the past, mentioning the horror show that was Nokia's April earnings, but also failed to mention the estimate cut. Marketwatch was also mum.
Fittingly, Reuters got there right from the start:"In a second profit warning in nine weeks, Nokia said on Thursday that its phone business would post a deeper-than-expected loss in the second quarter due to tougher competition." This is a defining fact that can mean several things, none good. Industry forces might mean Nokia's business is simply unspooling faster than anyone thought. Management might also be clueless, with no sense of where they stand. Or they might be engaged in the last act of a desperate company: telling the truth slowly. In other words, they're delivering terrible news in stages, so it doesn't seem so bad. Any way you slice a second estimate cut in nine weeks, it's not good. That's why you have to mention it prominently.