Still play hard ball. Apple built the largest corporate entity on Earth guided by capitalism and the rule and spirit of American law.

In the absence of local rule of law, or local laws which are incompatible with the American moral outlook on human rights and civil liberties I would instruct my company to observe American laws. If Iran doesn't like that let Iran figure out a way to stop me locally. I am under no pressure to implement immoral company policies to support something which ultimately goes against the system which enabled my business to thrive.

Apple is big enough to completely disregard an authoritarian regimes wishes and get away with it.

Imagine a world where the big tech companies actually has morals that they upheld. The cost of doing business in China is they're going to steal your proprietary tech. Everyone accepts that cost and still does business with China. Imagine if American companies enforced human rights with the same viritol. The world would be positively incentivized to adopt legitimate democracy or fall by the technological wayside.