The bigger problem I see is that if Apple gives in, what stops other countries (China for example, Apples largest market) from demanding the key?The problem for Apple is that the USA is just a fraction of its market. If it does this, it somewhat alienates its products from the global market because the USA has access to its devices. Both iPads, ipods and I phones have the iOS. They will be appeasing the authorities of one market and upsetting others. They're in a catch.