You say they have a marketing problem, but do they really? Apple never claimed their encryption was unbreakable, they just said they don't have the encryption keys.What I read was they did not. They just found some [presumably hackers] who did it, thus all theories about prior ability are wild speculation. Apple has a marketing problem now. Some bought it as "unbreakable" and their early attitude was to lie and claim it couldn't be broken into. Then the rest of this pitch about "rights" instead when it became clear that is "hard" but not impossible. This is marketing damage control, don't elevate marketroids into heroes. Like everything else, somebody found a more "natural" back door that was already there, no need to ask for another one. I'm glad because it makes Apple out to be the hypocrites they actually are.
And they want the government to further reveal exactly what the mechanism is that was exploited? I say let them pay for it. After all, had they and the hackers gotten together to fix it, Apple would have paid. Why is this any different? The false premise of "perfect" code that was pitched is just a fairy tale. I hope more Android phones are sold to disillusioned former Apple buyers. If it isn't "perfect" for the purpose of hiding their naked selfies they took while drunk, they might as well spend less to do it all over again. Free enterprise is the winner here.
Apple is probably going to have to pay the people who found the exploit to find the vulnerability and patch it. The reason it's different, is that now they don't have to pay someone to find a flaw in their encryption or create one for any other reason than improving security instead of undermining it.
I don't think this is going to make a huge dent in iPhone sales, but I guess I'll have to wait and find out.