I agree they could sell a lot but I doubt Nintendo will produce millions more than the 25 they are supposedly producing. 26 maybe but anything above that will be surprising. 

Yeah the main limiting factor in Switch sales this year will be how many Nintendo can produce and ship.

Anyway, with NES now behind it, there are now only 6 consoles ahead of Switch in sales; Wii, 360, and PS1-4. And this after less than three and a half years.

I mean, if they can't meet demand this quarter they will add more units to prepare for the holidays. 

There's a limit to how much they can produce though, shortages of factory capacity and parts probably won't allow them to make, say, 30 million even if they wanted to.

Yea but we don't know what's the limit. Maybe 30 could happen. If they keepe 25 but the Switch is still Out of stock the rest of the year then we'll know.

It's true we don't know the exact limit, my point was simply that it's not a question of Nintendo simply ordering as many as they want, there are bottlenecks in the production process that place hard limits on how many they can physically make and ship.

Also, can we assume with increased production that they will spend less money on them (due to bulk ordering of manufacturing parts), and therefore their profits will increase even more for each one sold?

Probably, still don't see them lowering the price this year, which is totally insane to think about. It is currently selling at the same price the PS4 was after 3 years when the slim came out. Nintendo must be making so much money on every Switch atm. But like you said, they might make even more right now since they increased production.