The company is also concerned about having to create an in-house "hacking department" that would become an irresistible target for hackers and foreign spies.

Given a long history of hackers and spies targeting tech companies' surveillance and law enforcement assistance mechanisms, experts agree that Apple's "hacking department" for the FBI would become one of the most prized targets for cyberspies and hackers looking to get around the iPhone's vaunted security.

That would be a "big bull's eye" on Apple's "front door," according to a person close to the company, who spoke to Motherboard on condition of anonymity.

That would be a "big bull's eye" on Apple's "front door."