It's never about how much the hardware costs to make its about how much people are willing to pay. The wii has nothing of value in it, in fact it was reported that the optical drive cost more to make than the motherboard no doubt because of the ability to take gamecube discs but that console sold close to that of the Xbox 360 which was cutting edge at the time. Iphones have huge margins for example. You have to factor in R&D costs and setting up production line's etc too. Most companies including Nintendo will price something at what the market will bear not lets say all of their costs plus a profit of 10% per unit. Some products are highly competitive with many manufacturer's making competing units, lets say laptops and in that market there probably is a slim margin for the manufacturer maybe even less than 10% per unit allowing for all their costs not just manufacturing but only Nintendo makes the Switch, so if you want one you have to buy it from Nintendo. The only real price competition is at retailers and they aren't going to do that if there is an under supply of product.
