Did you catch that? That’s a classic police threat: We can do this
easy way or the hard way. Give us the little thing we’re asking
for — a way to bypass your security software — or we’ll take
whole thing: Your crown jewels and the royal seal too.
With Apple’s source code, the FBI could, in theory, create its own
version of iOS with the security features stripped out. Stamped
with Apple’s electronic signature, the Bureau’s versions of iOS
could pass for the real thing.
Keep in mind that no one is saying that Apple has broken the law. The DOJ is attempting to intimidate them simply for making iPhones more secure.