A report by Pocket Gamer says Nintendo considered producing a mobile phone back in the early 2000s.
According to a "development source", Nintendo worked with Nokia on an R&D project around the same time the first N-Gage was being developed. However, the board of director's rejected the concept. Instead they gave the green light to what would become the DS.
"You have to remember Nintendo is a very conservative company," said the source. "It always has various R&D projects on the go, but most of them are eventually rejected. It's just how it operates."
It's not the first time these plans have been discussed. In fact, back in 2007, engadget dug up a patent for a Nintendo mobile filed in November 2001.