Nintendo has been thinking about internet connectivity since the gameboy:

http://bulbapedia.bulbagarden.net/wiki/Mobile_Adapter_GB

and the SNES:

(http://en.m.wikipedia.org/wiki/Satellaview)

so they certainly have made prototypes and have ideas of how to use it in the future.

A Brief Look at Nintendo’s Online History:
http://tvandlust.net/?p=6143

Phone hardware market is highly competitive and it's a race to the bottom.  It's also just controlled by carriers.  Where's the Xperia Z2 phone for Verizon?  You need to be the 800-pound gorilla to control carriers.  Even Google can't get their phones on Verizon.

While I think a Nintendo phone would be neat concept, I don't think it would sell much or make much profit.  Phones quickly become outdated and Nintendo would have to be releasing multiple devices every year to be relevant.

Being in the smartphone hardware business would be counter productive to selling Nintendo games.  What's the point of making your own phone to have a user base of a few million, when you can publish your games on the available markets and reach almost 2 billion smartphone owners and counting?

I an sure Nintendo has a phone.

In fact i'm going to look up the number and call them RIGHT NOW!

you missed the famicom modem of 1988

http://en.wikipedia.org/wiki/Famicom_Modem

Apple and Google already own the lion's shares of that market. It would be stupid to enter that hardware front stuffed with competition. From super high end, to low end phones. The big mobile and electronics manufacturers have it covered.. hell, even chinese brands are making waves here in the west with their cheap phones.

There are two cases I've seen of companies that have tried and enter phone market with gaming hybrids, and both ended up as complete failures; Nokia with the with N-Gage, Sony and Xperia Play. Why is that? Simply put, there isn't a market for clunky mobiles with physical controls. A mobile with Nintendo label on it isn't going to turn any heads when there are shiny new Samsung and Apple phones around the corner, with; superior specs, looks and engineering that appeal to casuals. And non gamers need not even bother.

If Nintendo goes too high end it would kill the market available for the younger demographics. And potentially cut off a huge part of their userbase. We've already seen this happen on the PSVita. Adding mobile capabilities is only going to add unnecessary cost to the device.

In short, it's a terrible idea and Nintendo shouldn't do it.

No. In the mobile market they would be squashed like a bug, and they know it.

Here is someone who has been to E3 and belive that if anyone can do it it is Nintendo:

http://techcrunch.com/2014/06/15/i-hath-seen-the-future-of-videogames/

The phone concept is not detailed but seems to be part of it all.

Nope. They're much better phones on the market and I doubt many people would care for a Nintendo phone.

That's like that N-Gage thing. It won't work at all. You can't mix phones with gaming efficiently, sadly.

Nintendo is doing just fine using smoke signals!