They try to reduce their exposure to these government information requests; by keeping personal data on the devices and storing anonymized records on their servers when possible.
What is more of a grey area is whether or not a court can compel Apple to hit you with some malware. The government can ask "give jrockway a special firmware so that whenever he tries to shitpost on HN, the browser locks up until he types his iCloud encryption key into nsa.gov". What's not clear is whether or not Apple has to obey that request. It seems pretty likely that the government doesn't have that power, so Apple can tell them to go away. But who knows, it's perfectly possible to pass a constitutional amendment that literally says "Apple, Inc. has to dedicate 100% of their resources to spying on readers of the dark website Hacker News", and it's all moot. I've seen Congress (or rather, the states in this case) trying to agree on less controversial things before, though, and I'm not too worried about anything changing. (What's the opposite of pro? Con. What's the opposite of progress? Congress.)
Encryption is literal kryptonite for democratic governments. Apple is putting themselves at the forefront of the debate. It will be interesting to watch!