Laughable. They can hire enough people to build as many as they want. The problem is that if they built enough to keep up with demand, they become another Omega or Tag Heuer, and then they aren't "special" anymore.
The last part is correct though. The AD's aren't doing them any favors. Case in point, I have a good friend that used to live in the midwest before he moved to Florida. He was back in his old hometown, and walked into the local AD that he had bought a Daytona from 20+ years ago. When asked if the AD had anything in stock, he was initially told no, that everything they had allocated was already spoken for and there was a waiting list for everything. Friend asked if he could get on the list for a Sub, was told it would be years, so he asked if there was a list for a YachtMaster II and was told yes. After wandering around the store and talking about watches in general, the AD walks into the back room and produces a YMII and tells him it's his if he wants it. No Rolexes on display, and everything was allocated, to here's a YMII if you want it.