Sure. So the difference is in one case, what the FBI is proposing is to force Apple to make iOS less secure than what they feel they've worked very hard on vs handing over data that is in iCloud that isn't encrypted and does not require Apple to weaken its encryption methods. I suppose after this, at WWDC, Apple will announce that iOS 10 will create encrypted backups on iCloud.
There is a lot of confusion here what is protected and what is supposed to be protected.
If the police has a valid search warrant to search your phone then they have the right to search your phone. If they have a valid search warrant to read your iCloud data then they have the right to read your iCloud data. In this case, they have a warrant; nobody would expect they might have not got a warrant because this is a multiple murder case, and on top of that the actual owner of the phone gave permission to the search.
Now Apple is an unrelated third party. If they have information in their possession then they have to deliver that. That's the case with the iCloud information. Apple has the information, they can deliver it, there is a search warrant, so they deliver the data. But with the iPhone, Apple hasn't any of that information in its possession. Apple says "we sold this phone, it has nothing to do with us".
Apple isn't trying to keep data away from the government. Apple is trying to keep it's customers' data safe. There's customer data in your iCloud backup. Apple says this customer is safe enough because Apple keeps it's servers safe from access by hackers, and because all the data on these servers is encrypted while stored. With a key known to Apple. Because Apple isn't going to steal your data. It's not safe from a search warrant, but it's not a requirement that it is safe against a search warrant.
There is data on your phone, protected by your passcode. Here, Apple says that the passcode is only safe enough if _nobody_ including Apple can get past it. That's because Apple can keep it's servers safe from access by hackers, but they can't keep your phone safe. Any pickpocket can get your phone. Apple can't prevent that. And Apple says if a hacker has your phone in his hands, and if there _is a way_ to get in, even if it is a way that should be open and known only to Apple, then that kind of information tends to get out. If today only Apple can get in, then eventually some hacker will be able to get in. That's why Apple absolutely refuses to create a way to get in. It's too risky. If Apple can break into your phone today, then Apple is afraid that hackers might be able to do so tomorrow.
The fact that this makes a search warrant useless is an unwanted and unfortunate side effect. In this case, the perpetrator has physically destroyed a hard drive and two phones. That's three search warrants that are useless. The perpetrator could have destroyed the iPhone as well. Just because the FBI has a search warrant doesn't mean they get results.
Hold up! So there is a way access data in the iPhone? **** that ****. Fix that bug Apple. I pay a lot of money for these reasons. Steve Jobs would never allow this to happen.
See, that's where you are wrong. Apple works very, very hard to protect you from hackers and criminals. Including from hackers working for governments. Apple doesn't
intentionally try to protect you from legal search warrants. It's just an unintended side effect that making your passcode safe enough to protect you from hackers makes it safe against search warrants as well. Your iCloud backup is absolutely safe from any hackers (as long as your password is safe enough) and that is all that Apple tries to achieve. It's not safe from a search warrant. That's not a bug. Being safe from search warrants is just not a requirement.
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Maybe I'm confused - and I probably am having read it quickly. But if Apple could have helped them before the password change but won't after - really - what's the difference. Not that I'm saying that Apple should help the FBI. But how genuine is their statement? You're either going to break into someone's phone or not. What difference does it make if the password has been changed?
You have your iPhone at home. It is locked. Even though it is locked, it detects your WiFi network at home and it knows the password for the network. It connects to iCloud, which it can do because it knows your iCloud password. And then it backs up to iCloud even though your iPhone is locked. If you change your iCloud password that doesn't work automatically anymore, because your phone doesn't know the correct password anymore. Of course you can and will unlock your phone, change the iCloud password on the phone, and backups work again. But the FBI cannot unlock the iPhone.
So Apple can read your backups (when the FBI shows them a search warrant) without any need to break into your phone. And they told the FBI a way to get the data from the iPhone
without breaking into the phone. And because some idiot changed the iCloud password, that method doesn't work anymore.