The company has recently revealed via its website (via Gizmodo) that they are no longer able to bypass a user’s passcode, meaning that if and when law enforcement asks them to turn over your data, they will be unable to access your data, thus resulting in the search warrant being somewhat moot.
We should point out that this does not apply if your data is stored on iCloud, in which Apple would have data to turn over. However if it is all stored on your device, you would basically be the only one capable of accessing it. Prior to this, it seems that Apple used to store encryption keys that allowed them to unlock your device, as pointed out by The Washington Post.
This is good news for those who are even more paranoid post-Snowden reports, but at the same time this also means that if you do forget your passcode, you will have no choice but to wipe your phone and start all over as Apple’s customer service will not be able to unlock it for you.