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FragilE^ said:
Nintendo themselves werent even confident about the Switch's success.

Glad it worked out~

I don't know if I'd say they weren't confident, but rather they were cautiously optimistic.

After the 3DS got off to a bad start that took them a $100 price cut and some losses to get back on track and the Wii U being a colossal failure, both systems being overshipped as well, I'd be cautious about my next system too.

They were in a precarious position that could've screwed them even more if they weren't careful.

Obviously, they were confident in the Switch, they had to be, but after the 3DS' slow start and the Wii U's failure, they felt it was better to be safe than sorry.
Now, I'm sure if they could go back in time and ship more units at launch, they would do so in a heartbeat, but they can't, so they just have to make the most of what they can do now.