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They don't need to increase supply. Rolex is set up as a charity (no corporate tax) so more money more problems. All they have to do is increase prices and they are doing that.
I was surprised a couple of years ago to see the prices of other brands had caught up with Rolex, compared to 10-15 years ago when they were about the level that the flippers have them at now. If anything Rolex have been slow to increase prices in line with the market and flippers have stepped in. Of course it used to be just the Daytona that was permanently +£2k on the secondary market but now they've made the magic happen with all the sports models. They must have figured out how the supply chain numbers work.
I'm surprised they just don't increase supply and set the prices at what flippers charge
Destroy the flipper market and keep the profit. I fail totally to see how this situation is any good at all for Rolex