As I understand it, it's not just unlocking the phone. The government wants Apple to produce a software that will bypass the phone's security encryption system.
Quote from Apple's letter on their website:
"We have great respect for the professionals at the FBI, and we believe their intentions are good. Up to this point, we have done everything that is both within our power and within the law to help them. But now the U.S. government has asked us for something we simply do not have, and something we consider too dangerous to create. They have asked us to build a backdoor to the iPhone.
Specifically, the FBI wants us to make a new version of the iPhone operating system, circumventing several important security features, and install it on an iPhone recovered during the investigation. In the wrong hands, this software - which does not exist today - would have the potential to unlock any iPhone in someone's physical possession.
The FBI may use different words to describe this tool, but make no mistake: Building a version of iOS that bypasses security in this way would undeniably create a backdoor. And while the government may argue that its use would be limited to this case, there is no way to guarantee such control."
Thanx for the info guys.
“The government wants Apple to produce a software that will bypass the phone’s security encryption system. “
NOWHERE is ‘encription’ mentioned. Only a way to keep the phone from erasing after the allotted number of tries.