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The FBI has asked Apple to create a custom version of their iOS software to make it possible for them to brute force the passcode of an iPhone. Apple claims the request is a step too far and personal privacy is at stake. If Apple is able to, should they unlock the iPhone for the FBI?
An Apple Support document (HT202303) provides a complete guide to how encryption is used by Apple products and services. iCloud encrypts your data when it is sent over the Internet, storing it in an encrypted format when kept on server, and using secure tokens for authentication. iCloud uses a minimum of 128-bit AES encryption. With a caveat for system version for Notes, it appears that everything Apple does - Calendars, Contacts, Bookmarks, Reminders, Photos, Documents in the Cloud, iCloud Drive, Backup, Find My iPhone, Find My Friends, iCloud Keychain - is encrypted both in transit