Apple filled their motion to vacate the court order that would require the company to make a backdoor for an iPhone 5c recovered from the San Bernardino shooter Syed Farook. It states "This is not a case about one isolated iPhone," and later on it says that the FBI is seeking a "dangerous power" that will undermine the security and privacy of hundreds of millions of people.
Apple argues that the All Writs Act does not give the government a pass to "conscript and commandeer" them. Apple writes, "No law supports such unlimited and sweeping use of the judicial process, and the constitution forbids it." Apple thinks that if they do this then they could be force to turn on the microphone and camera on our iDevices without our knowledge.
Apple says that the FBI's demands would violate their First and Fifth Amendment rights. Apple also points towards the Communications Assistance for Law Enforcement which says:
In addressing the twin needs of law enforcement and privacy, Congress, through CALEA, specified when a company has an obligation to assist the government with decryption of communications, and made clear that a company has no obligation to do so where, as here, the company does not retain a copy of the decryption key.
Now that Apple has filled their motion it will wait for a response form the courts. Apple has promised to take this fight all the way to the Supreme Court if they have to.
The new iPhone will probably be called the iPhone SE and not the iPhone 5SE. Here is a reasoned stated on MacRumors:
Based on Apple reinvigorating the 4-inch iPhone screen size at a time where the market is mostly moving toward larger smartphone screens, it would make sense for Apple to position this device as simply the “SE.” Sources say that the dropping of the “5” from the name also simplifies the iPhone lineup as bringing back an iPhone “5” variant amid the iPhone “6” lifecycle could potentially confuse customers. The iPhone SE will replace the existing iPhone 5s and will take its price points.
Apple's new device is rumored to have an A9 processor and an M9 motion co-processor. It is also said to include NFC for Apple Pay support. It is expected to come in four colors: Silver, Space Gray, Rose Gold, and Gold. Recent leaks also confirm that the device will not feature 3D Touch.