Software is really good largely likely due to the Switch having an older demographic with more disposable income to buy games with.
But the hardware number of 1.88 is on the soft/weak side. It's not terrible, but it's not great either, you see a 5 year old platform like the PS4 crossing 3 mill with ease in the same quarter.
Switch is more sensitive to its release schedule, Nintendo is gonna have to find ways to ensure new high profile content is constantly being released on the system. The whole "well we have Labo and that should carry hardware sales for the summer" type thinking isn't going to work with Switch.