The biggest percentage decliner on the New York Stock Exchange is cell phone giant Nokia (NYSE:NOK). Second-quarter results were as annoying as a phone ringing in a quiet theater. Net sales declined 5%, and market share declined 1% to 31%. That one-two punch landed the stock 15% lower.

The company clearly states that going forward it will use pricing to maintain market share. That strategy leaves investors with this guidance: Next quarter's sales will be marginally lower, and profits will fall from $.17 a share to $.08 to $.10 a share.

Today's drubbing has taken the stock to a two-year low. At 14 times earnings, cash-rich Nokia already reflects investor hesitation about its recent past and future.

Not all of today's news was bad. Networks, where a large write-off last year caused a loss, were solidly profitable this quarter -- and provided the oomph to drive overall net income 14% higher for the second quarter.

Nokia is upbeat about its product line. It just sees aggressive pricing stopping strong cell phone growth from delivering improved profitability -- for now.

Also today, Sony's (NYSE:SNE) and Ericsson's (NASDAQ:ERICY) mobile phone joint venture was ringing in its fourth consecutive quarter of profitability. But its operating margins of 7.5% look downright dull compared with Nokia's 19.1%. The parent companies' operating margins also pale compared with Nokia's.

Overall operating margins, and net cash positions, fall short at competitors Motorola (NYSE:MOT) and Siemens (NYSE:SI) too.

Take this Foolish look that others are not. Nokia can lower margins to regain market share and still have higher margins that its competitors.

Nokia still dominates in new cell phone features. Nokia has moved NEC (NASDAQ:NIPNY) aside to take the lead in camera-phone shipments. On June 1, Nokia announced it had surpassed palmOne (NASDAQ:PLMO) as the world's top seller of mobile computers.

There is no question Nokia needs to get profitability on an upward track. Cash rich and with a leading market share, the profitable Nokia is well positioned. Weak next-quarter guidance has sent the stock nearly to a five-year low. But an investor with a five-year outlook would be buying a leader with a great balance sheet and superior margins.

Seth Jayson and I dueled over Nokia back in June:

Fool contributor W.D. Crotty does not own stock in any of the companies mentioned.