This entire case has more to do with setting a precedent for installing back doors on consumer tech than anything else.
Disagree.
It is established that if the government works out how to install the back door, and they build the back door, they can require businesses to install it.
They can demand you turn over documents and records that already exist. They can require you to cooperate with an investigation, which can mean installing eavesdropping equipment, require you to split off traffic to them when the traffic is directed to specific accounts, or in the case of voice communications, ensure your VoIP protocol implements the mandatory wiretapping protocol via CALEA.
The order is not about that. The courts could rule on any of them, but the three biggest ones I've read about are:
1) First amendment challenge. SCOTUS has ruled code is protected speech. SCOTUS has ruled that freedom of speech is not just protection to state your views, but also protection from being forced to state what is not your view. The challenge is that this order is forcing Apple to state something that is not their view. The appeals court could overturn the order citing protected speech. The FBI really wants to avoid this argument, and have been doing their best to redirect from it.
2) Requirement to invent. More and more lawyers have chimed in on this one. At first it was suspected to be a first, but it seems nobody can find any legal precedent in the US where a company is required by court order to invent something. Government can encourage it and reward it, but never in history has it been a court order to help invent something. This would be a major legal challenge and major precedent.
3) Forth amendment challenge. SCOTUS has recently ruled in many recent cases that warrants around bulk actions or automated actions have a different level of scrutiny than warrants against individual and manual actions. This has come up many times in the last decade. This is fun because it is not Apple itself, but the rights of the customers. Under Just Tertii, a company can argue on behalf of their customers, since even though the customers are not named parties in the suit, the rights of the customers have a direct affect on the issue so their position needs to be considered. All of this lawsuit stems under the 4th amendment, seizing and searching a device for data. Customers have a very strong privacy right, it is a power specifically prohibited which the government cannot breach except under the conditions outlined in the 4th amendment. Since creating the software would affect all customers, would give the government a tool to automate attacks against all such devices, and since all this work is done under connection of a warrant, the argument is the warrant at issue is unlawful and overbroad. Therefore the order is unlawful and overbroad.
None are a precedent for installing a back door -- that is already possible if the Government can provide the door. At issue is if the government can force a company against their will to attempt to create a back door that doesn't exist, a back door that affects the millions of devices outside the warrant and not just the one stated in the warrant, then be forced to surrender that tool for government to use on any devices at their whim.