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NiKKoM said:
So at which market would Nintendo aim with this? Parents with kids? They'll buy them an iPod touch... or a cheap tablet..


Primarily the Japanese market and people looking for a Android phone with a quality build but without a ridiculous markup. Teens/adults who want to have a little "real" gaming fun to go with all the usual Android features they expect from a phone. And yes sure, kids who are getting their first phone, why not. 

In fact, I would probably considering limiting quantities of the phone in the US/Europe at first. Roll it out in Japan first and see how it does.

Like I said, keep expectations reasonable, this would not be something that would compete with the iPhone or Galaxy at all. iPhone sells like 30-50 million in quarter. This is something that could still earn Nintendo a big, fat profit selling a modest 2-3 million a quarter worldwide.