The problem with supply and demand is that it's tough to guess what the demand is and it's even harder to quickly react to it.
You can't blame Nintendo for playing it safe after the Wii U. They went from gaming leper to golden child in the span of three months. Forecasting sales, ramping up manufacturing, organizing product assembly, scheduling shipping, and arranging payments for the whole thing is at minimum a 6+ month laborious process involving several hundred people. And most of those people all come from different cultural backgrounds, speak different languages, have their own fiscal goals to maintain, and must adhere to their own business schedules. It's an organizational nightmare when you're trying to meet global demand for a hot product.
Considering that the Switch is consistently a top seller in four major global markets and console shipments are coming in literally weekly to most major retailers, they are actually doing a phenomenal job. It's more than likely due to Nintendo's 30 year history with overseas manufacturers that are letting them compete and hold their own against Apple and other major electronic OEMs.
