Earlier quoted context omitted.
The phone itself is only a piece. Apple sells multiple services, without them the phone is useless. If you can't access the appstore, the backups, etc. what good is an iPhone? Now, the UK can say that UK citizens' data can't travel outside of the UK without the UK government permission. So it's still a problem. This seems like a looming PR battle.
> Now, the UK can say that UK citizens' data can't travel outside of the UK without the UK government permission. How so?
Same as GDPR forbids the same thing from EU.