The local models both seem to have 16gb of storage.Which equates to R2240.48 at current rates, excluding taxes.
So add your 10% duty, and 14% VAT and that comes to R2809.56.
So I would say they're not making massive profits on the unit tbh... They get it for cheaper than $199 for sure, but they have to ship them here which costs money.
I would say they're probably making about R400 per unit, at most.