Apple is and was right, but Apple is probably already giving up a lot of personal data to the FBI. The FBI did not want that case to get to court, because they ran a risk of losing it. They know that Apple was exactly right in warning that they were being illegally ordered to open a back door, and to give up to extortion of company property and company resources to do it.
That would not work for a small company of three employees.
But now they’re taking a case to court in New York. Maybe they’re judge-shopping.