Apple employing people in the EU doesn’t affect if or how they offer the iPhone and services. If the shareholders direct them to NOT make the changes (because those would eat into the bottom line and would only be valuable in the least profitable region) and just remove the products that would cause fines to be assessed, they could still have employees in the EU, still have retail stores, still have Apple Geniuses that fix products, still sell Macs, and even still sell iOS accessories. Of course, EU developers would not have an EU store to deploy to, but they likely make most of their profits on the North American store, so they can just deploy there.
If the EU asked Apple to hand over the encryption codes to the EU authorities, then, just like with China (if that happened, I don’t have the link

), Apple would still do the same. And, again, that’s just another indication at how much further the EU is reaching than China ever did. And, if this reach reduces the value of the investment in the EU region, and shareholders feel their investment would be better spent focusing on the iPhone and the App Store OUTSIDE the EU, then Apple will do what ups shareholder value. Nothing against one region or another, just all about the dollars.