This is the week that might determine Apple Inc.'s fortunes for years to come:  On Monday, the Cupertino giant is expected to unveil the next generation of iPhone.  And 24 hours later, Apple will face off in court with the US Department of Justice over whether the company can be forced to unlock the iPhone used by a terrorist.

When Apple introduced the big, giant iPhone 6, its competitors in the Android world followed with their own phablets, smart phones almost large enough to be called tablet (and require their own postal code).  Big became the new normal as Apple and Samsung grew their products.  But now, Apple is reportedly going to try to reverse that with the iPhone 7, which could return to the 4-inch diagonal screen of the iPhone 5. 

"While people like the bigger phones, there are devotees of the smaller phones simply because of different-sized hands and pockets," said Frank Gillett, a Forrester Research analyst.  "By taking the electronics from a newer phone and moving most of it into a smaller phone, they can update the look and preserve the choice for consumers," he added.  Improvements are expected to the processor, camera, and battery life.  The next iPad will also be introduced.

On Tuesday, Apple's lawyers will meet with DOJ attorneys in the office of a federal magistrate in Riverside County, California. They're clashing over a court order to Apple to unlock the iPhone 5c used by Syed Farook, one of the shooters in the terrorist attack in San Bernardino, California that left 14 people dead.  Either law enforcement will lose the ability to thwart terrorist plots, or Americans - and by extension, everyone who communicates with Americans for whatever reason - will be forced to live in a police state.