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First of all can Razor sell phones? They can try but have they stated that they have been successful yet? I genuinely don't know, I haven't been following it too much.

Of course saying no one is hyperbole, someone would buy it, but you have to account for:
-Nintendo clearly isn't about to make an android phone, consoles make them a lot of money and they aren't going to start competing with themselves. (Makes no money on mobile game sales). If portability is an issue, they are very likely making a smaller Switch. Which would be even more reason to not make a smartphone.
-Based on this rumor the phone would necessitate connection with a Switch, limiting the market greatly
-The phone would also now be far less versatile as it is now just an addition to a console and not a full smartphone
-The smartphone industry is already so competitive. There are a lot of other companies Nintendo would compete against, and they will have far more features. Reminder that not even Microsoft and Sony could succeed in that industry.
That isn't really a set up for success...