In a conference call Nintendo told investors that it was expecting its first major losses thanks to slowing Wii and DS sales but also considered the iPhone a competitor to the DS.

Nintendo has said it expects slower DS sales due to “increased competition in the handheld business from Apple’s iPhone.”

It’s not unexpected that Nintendo would feel threatened in some way considering the iPhone uses a touch input system and does much more than gaming. In addition, John Carmack, co-founder of ID Software, has been known to praise the iPhone for its superior processing power when compared to the DS and PSP.

Via Engadget