The days of Apple's amazing profits may be over

The days of Apple's amazing profits may be over

Apple's incredible margin expansion Apple has been a major part of recent S&P 500 margin expansion. Boris Schlossberg and Larry McDonald discuss with Mandy Drury. The S&P 500 's profit margin growth over the past five years has been driven largely by tech, and one name in particular: Apple . Unfortunately for the market and for Apple, the days of exceptional expansion may be over. That's according to David Kostin of Goldman Sachs, who wrote in a note Monday to clients that he expects margins to remain flat at 9.1 percent for 2016 and 2017. "Many of the drivers of margin expansion during the past few decades appear to be behind us," Kostin wrote, listing former catalysts such as lower interest rates, lower taxes, a switch from manufacturing to services and technological innovations. Since 2009, information technology has been responsible for about 48 percent of overall S&P 500 margin expansion. Apple alone has been responsible for 18 percent.

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