It means that your iPhone (current serial number) has been returned to Apple (most likely for a repair job) and apple had issued a replacement iPhone (with a new serial number with part number or model number starting with letter "N"). Apple will stop supporting this replaced iphone with old serial number, usually the returned iPhone will be repaired or have the broken part replaced and will be put back to circulation with a new serial number and a part number or model number. We will never know if the iPhone will be sold as new iPhone or as a replacement iPhone. But I personally think Apple will not sell it as new iPhone, most likely be sold as refurbished iPhone.
If you bought your iPhone from a retailer, maybe Apple forgot to change the serial number, but if you bought it from other people, maybe it is a result of a crime?? I don't know for sure, just assuming.
If you try to search for the replaced serial number, apple will respond with this:
"We're sorry, but this is a serial number for a product that has been replaced. Please check your information and re-enter your serial number. If your information is correct, you may need to contact us."