CEO Tim Cook said his company will fight a ruling by Judge Sheri Pym, who ordered Apple to offer "reasonable technical assistance" to crack the device.
The phone was owned husband and wife terrorists Syed Farook and Tashfeen Malik - who killed 14 people at a Christmas party on December 2.
But police still cannot crack the security on the phone - which investigators believe may have been used to communicate with ISIS terror chiefs.
Judge Pym had ordered Apple to disable a feature that blocks the iPhone 5C if too many unsuccessful attempts are made to unlock it.
Federal prosecutors had filed a motion requesting Apple's help after the FBI failed to crack the phone's code.
By disabling the security features, the FBI would have been able to attempt as many different password combinations as needed before gaining access.
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| CEO Tim Cook |
"In the wrong hands, this software - which does not exist today - would have the potential to unlock any iPhone in someone's physical possession," Cook said.
"The FBI may use different words to describe this tool, but make no mistake: Building a version of iOS that bypasses security in this way would undeniably create a back door," he went on to say.
Farook, a US citizen, and his Pakistani wife stormed a Christmas work party on December 2 and shot their victims.
The tech giant had been granted five days to comply with the order or formally state that doing so would be "unreasonably burdensome," Judge Pym said.
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