Will Apple (AAPL) Stock Suffer From PR War With FBI?

The lengthy slump continued for Apple AAPL on Tuesday, as share prices dropped over 1.5% in morning trading. For months, questions about the company’s sales have lingered, but now it looks like Apple could be losing a public relations battle.

Apple’s opponent in the latest PR war is none other than the F.B.I. Yes, that’s right. One of the world’s most recognizable brands is squaring off against the investigative arm of the United States government.

If you haven’t heard by now, the F.B.I. has been pressing Apple to provide assistance in unlocking an iPhone used by one of the attackers in the San Bernardino shooting that killed 14 people in December. Last week, a California judge ordered the company to help unlock the phone.

(Also Read: 7 Key Facts about the Apple & F.B.I. Dilemma)

Apple’s CEO Tim Cook fired back with an open letter that criticized the ruling. “The United States government has demanded that Apple take an unprecedented step which threatens the security of our customers,” Cook begins. “We oppose this order, which has implications far beyond the legal case at hand.”

To clarify, the court is only ordering Apple to disable a feature that automatically wipes an iPhone clean of its data after a certain amount of failed password attempts. The F.B.I. wants Apple to go several steps further by creating and installing a new type of iOS on the phone that would grant “backdoor” access.

To make matters even more interesting, this debate is taking place in the headlines, with both sides speaking publicly and third-parties chiming in. Recently, Facebook’s FB Mark Zuckerberg defended Cook and Apple. Microsoft MSFT founder Bill Gates' comments grabbed headlines for siding with the FBI, but he later claimed that reports went "too far" and the issue wasn't "black and white." 

While others in the technology world may not be sold on the F.B.I.’s argument, the American public is slightly more convinced. According to a new poll by the Pew Research Center, 51% of respondents say that Apple should unlock the iPhone, while just 38% say that Apple should not.

This data leads to an important question: is Apple losing the PR battle, and will it have an effect on the company’s stock performance?

It’s difficult to link this news with today’s downward activity, as Apple stock hasn’t been going anywhere but down for several months now. However, it is certainly true that many investors are motivated by their political or cultural beliefs.

Of course, more importantly are the shoppers who are motivated by their beliefs. With the majority of Americans seemingly opposing Apple’s moves here, it could spell bad news for the company’s top line.

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