Because governments to include the US government have been pressuring Apple to do this. It’s not good when you have your subjects using a method of communication that’s very difficult for you to intercept. The less democratic government is the worse it is.
Apple isn’t worried about financial loss because other than a short-lived outrage there’s nothing consumers will or can do. Apple knows this. There is no other privacy focused alternative. And in a sad way I think it’s funny that all these people were worshiping Apple like it was some sort of charity now realize it’s just a corporation designed to make money. I love Apple products but Apple as a corporation and Tim as a CEO isn’t any different than Google or Facebook ethically.
If you haven’t seen this video it’s a good watch. Just wait till Renee and Georgia finish a little bit of chitter chatter she straight up goes off on Apple. Renee is just sitting there looking like oh crap there goes my friendly relationship with Apple