It seems that many here would want Apply to defy China. This will result in Apple's expulsion from China/HK. Those users will then move to other phone mfgs/services providers, with higher probability that it will be Chinese, thereby granting the PRC even more power over HK'ers.
Contrarily is the "seat at the table" approach. Apple could comply with China, while continually introducing features/functionality that fundamentally block them (Apple) from complying with PRC demands (encryption, privacy, etc etc). Apple would not be able to announce this, and it might ruin their reputation in the meantime. It also allows Apple to continue hoovering up that sweet, sweet China/HK cash.
What is the best approach? Most of the comments here are signficantly oversimplifying the options available to Apple and the calculus that goes into making those decisions. Additionally, most opinions being posted are heavily centered on Western values/viewpoints.