No, you have it exactly backwards. Margins like that can't proceed from crappy hardware. The margins on the low end are razor thin. That's why HP, Dell, and Acer (and sometimes Toshiba) sell more PCs than Apple, but make much less in profits. The bulk of those sales are on the low-end, low-margin segment of the market.
Low-end is completely different than low-margin... Actually, the GP has a point, how can you sell $500 a device that is supposedly "cutting-edge", and make a huge margin? Are the production costs that low? Then how is it high-end.
And then there is the HP/DELL/Acer vs Apple argument... So how is a low-margin PC at $1000 crappier than a high-margin iMac at the same price? (disclaimer: I don't follow the price market for pre-assembled PCs nowadays but I am quite sure that some PCs are sold at the same price range than some iMacs, the figure is not that important, replace by whatever price range you wish to compare). Low-margin PC would mean that the components plus manpower cost almost $1000, High-margin iMac means that components plus manpower is significantly lower than $1000. Now DELL or HP manpower is probably cheaper than Apple manpower (design isn't everything for those companies), so components are easily better in an HP or DELL machine than in an Apple machine, for the same price.
Of course if you compare a $600 DELL to a $3000 iMac, you will probably find better hardware in the latter, but that's hardly the point, is it?