Re: they want Apple to do it ~For Free~.
"The refunds to companies that bought iPhones because of marketing people telling them no-one can gain access, not even Apple, etc etc?"
Why not? If I were Tim Cook I would comply on the basis that the cost incurred would be the development of the exploit firmware + the cost of destroying unsold 5c stock + the cost of offering all existing 5c customers a free swap upgrade to a phone model that would not be compromised by the new firmware.