For example, as a security researcher, I could order a copy of iOS 11.1 running on an iPhone 6 32GB. It would be spun up and accessible in about 3 or 4 minutes, and I could run direct commands on the Darwin kernel underneath.
Why is this illegal? Correlium DOES NOT have a physical iPhone 6 that it is screen recording. They actually have made copies of various iOS releases, and are running them on virtualization software, while making big bucks from the researchers for this technology.
Will Apple win? Well, if you look at the Apple vs Psystar case of 2007 (in which Apple won pretty much every case and appeal and every injunction they filed for), the odds of victory from Correlium is about as likely as Bill DeBlasio winning the 2020 Election.