• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales

1

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
TechApple

Why Apple Won Round 1 vs. the FBI, and What Comes Next

Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
March 23, 2016, 9:03 AM ET

A showdown between Apple and the FBI over a dead terrorist’s iPhone took a surprise twist this week, when a judge canceled a highly anticipated hearing at the 11th hour.

This came as a victory for Apple (AAPL) but, overall, it is still early innings in what is likely to be a long and bruising battle between the FBI and the tech industry. Here’s a plain English Q&A to get you up to speed on this week’s news, and what will happen next.

Why was the court hearing canceled?

The two sides, you may recall, are in court in the first place because the FBI wants Apple to write new code that would unlock an iPhone belonging to a dead terrorist. Apple is refusing.

Then, all of a sudden, the Justice Department said it heard about a new way to unlock the iPhone and probably doesn’t need Apple’s help after all. A court transcript reveals the government learned this from a “third party” less than 24 hours before the hearing.

So how exactly is the FBI going to unlock the iPhone?

No one is 100% sure but the best explanation is by computer scientist Jonathan Zdziarski. He suspects one of the forensic companies on contract for the U.S. government found a way to replicate a key chip in the iPhone. The ability to replace the chip means the FBI can try many times to guess the phone’s password—and subvert an Apple security feature that erases the contents of an iPhone if someone enters the wrong password 10 times.

Get Data Sheet, Fortune’s technology newsletter.

So why was this a victory for Apple?

All along, this case has been less about this specific iPhone (which likely contains nothing important) and more about setting a precedent. That’s why the Justice Department chose this case, involving a high-profile terrorist, to argue Apple should be forced to weaken the iPhone’s encryption in the name of national security.

The FBI’s recent sky-is-falling rhetoric now sounds less credible since the agency doesn’t appear to need Apple after all. This shift also makes the government’s very public legal and PR campaign against the company look more heavy-handed than before.

For Apple, the news ensures it will not have to rewrite its software at the request of the government. The recent events have also bolstered Apple’s role as a privacy champion, and strengthened the case of CEO Tim Cook that consumers should be able to encrypt their devices. (On the other hand, as The Wall Street Journal notes, the recent news is not all good for Apple since it suggests the company’s software has security holes.)

For Tim Cook’s take on Apple vs. FBI, watch:

So what happens with the case now?

While the government is supposed to file a status report with the court on April 5, the case is basically over, according to Nate Cardozo, an attorney with the Electronic Frontier Foundation.

“Regarding whether this hearing ever takes place, it’s certainly possible but doesn’t seem at all likely. FBI is taking this fight to Congress,” Cardozo said by email.

Cardozo believes the government has been on shaky legal ground all along and that, rather than risk an unfavorable precedent, the FBI will press lawmakers to grant it new powers rather than roll the dice in court.

Is this the end of the debate?

More like the end of the beginning. Apple and other tech companies will respond to this week’s events by making their devices even more secure, and it’s only a matter of time until there is another case where the government demands access to a supposedly unbreakable device.

About the Author
Jeff John Roberts
By Jeff John RobertsEditor, Finance and Crypto
LinkedIn iconTwitter icon

Jeff John Roberts is the Finance and Crypto editor at Fortune, overseeing coverage of the blockchain and how technology is changing finance.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Dan Rogers speaking on stage.
AIAsana
Asana was battered by the AI boom. Now it’s betting its future on humans and agents working together.
By Beatrice NolanMay 29, 2026
8 hours ago
Exclusive: Microsoft is building a super app that combines coding, chat, and other Copilot AI tools
AIMicrosoft
Exclusive: Microsoft is building a super app that combines coding, chat, and other Copilot AI tools
By Sebastian HerreraMay 29, 2026
10 hours ago
Claude Mythos shown on a smartphone screen.
AIAnthropic
Anthropic leapfrogs OpenAI with a record $965 billion valuation and says its ‘Mythos’ AI model is coming soon 
By Beatrice NolanMay 29, 2026
11 hours ago
Why Meta hired Dina Powell McCormick
NewslettersMPW Daily
Why Meta hired Dina Powell McCormick
By Ellie AustinMay 29, 2026
11 hours ago
The AI arms race in cybersecurity has started. Most companies aren’t ready
Cryptocyber
The AI arms race in cybersecurity has started. Most companies aren’t ready
By Philip MartinMay 29, 2026
11 hours ago
Kalshi adds perpetual futures for U.S. traders following thumbs-up from key regulator
CryptoBitcoin
Kalshi adds perpetual futures for U.S. traders following thumbs-up from key regulator
By Jack KubinecMay 29, 2026
11 hours ago

Most Popular

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
Magazine
As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
By Emma HinchliffeMay 27, 2026
3 days ago
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
8 days ago
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
Success
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
By Emma BurleighMay 28, 2026
1 day ago
Current price of oil as of May 28, 2026
Personal Finance
Current price of oil as of May 28, 2026
By Joseph HostetlerMay 28, 2026
2 days ago
UBS says Ron DeSantis has a problem with his plan to help 92% of homeowners save on property taxes: His own state's data
Personal Finance
UBS says Ron DeSantis has a problem with his plan to help 92% of homeowners save on property taxes: His own state's data
By Nick LichtenbergMay 28, 2026
1 day ago
The river that supplies 40 million Americans is down to 23% — and about to make a $25 million bet on one fish
Environment
The river that supplies 40 million Americans is down to 23% — and about to make a $25 million bet on one fish
By Dorany Pineda, Brittany Peterson and The Associated PressMay 27, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.