An NSA program called DROPOUTJEEP allows the agency to intercept SMS messages, access contact lists, locate a phone using cell tower data, and even activate the device’s microphone and camera.
... According to leaked documents, the NSA claims a 100 percent success rate when it comes to implanting iOS devices with spyware. The documents suggest that the NSA needs physical access to a device to install the spyware—something the agency has achieved by rerouting shipments of devices purchased online—but a remote version of the exploit is also in the works.
Here's a copy of a NSA document explaining how "DROPOUTJEEP," its Apple spyware, works:
This video lecture was published today by the journalist who got the scoop:
In the speech Applebaum all but accuses Apple of cooperating with the NSA to allow the agency to access any iPhone:
"[The NSA] literally claim that anytime they target an iOS device that it will succeed for implantation. Either they have a huge collection of exploits that work against Apple products, meaning that they are hoarding information about critical systems that American companies produce and sabotaging them, or Apple sabotaged it themselves. Not sure which one it is. I'd like to believe that since Apple didn't join the PRISM program until after Steve Jobs died, that maybe it's just that they write sh---y software. We know that's true."