Trailrunner7 writes "The Apple iMessage protocol has been shrouded in secrecy for years now, but a pair of security researchers have reverse-engineered the protocol [original analysis] and found that Apple controls the encryption key infrastructure for the system and therefore has the ability to read users' text messages–or decrypt them and hand them over at the order of a government agency. ... The researchers found that while that basic framework makes sense from a security point of view, there are a number of issues with the iMessage system. One major issue is that Apple itself controls the encryption key infrastructure use for iMessage, and has the keys for each individual user. The upshot of this is that Apple has the ability to read users' messages if it so chooses. The researchers who looked at iMessage, known as Pod2g and GG, said that there is no evidence that Apple is in fact reading users' iMessages, but it's possible that the company could. Users' AppleID passwords also are sent in clear text to the Apple servers."
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