No company cares about anything. A company is not a person.
Apple, because of its privacy-marketing, is incentivized to be the privacy player in the market. But only so far as consumers keep them honest about it.
They got away with this loophole because it stayed under the radar; if it gets enough attention and enough customers show that it matters to them, it could change.
On the other hand, it's possible that because we have a smartphones duopoly, Apple only needs to maintain a position where people will say "well at least it's not as bad as Google". I'm upset about this personally, but I'm not ditching my iPhone. Of course, this does cement my decision to never pay for iCloud, for what that's worth (much less, but not nothing).