If those details are accurate then it's purely an expensive peripheral aimed at the very small sub-set of PlayStation fans that really want remote play for their PS5. Calling it a handheld console is a stretch.
Maybe the margins will be high enough that they'll turn a large enough profit off the back of a few hundred thousand sold? Otherwise I don't see how it can possibly be a success; it has way less going for it than even the Vita (how many of those did the remote play feature shift?) or WiiU.