Apple is preparing for a major expansion of device financing with the upcoming “Apple Upgrade” leasing program — and iOS 27 already contains the tools to enforce it. Code discovered in the beta reveals a new “Restricted Mode” that can limit access to most apps and services on leased iPhones if payments fall behind, while preserving essential functions like Phone, Settings, and Health. Paired with a new “Partner Finance Lock,” this system gives financing partners powerful remote controls without handing over location data.

As Apple partners with Klarna to make iPhones and other devices more affordable through longer-term leases, these findings show exactly how the company plans to protect itself from defaults.

Marcus Mendes for 9to5Mac:
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9to5Mac can now confirm that code found in the iOS 27 beta appears to reveal a broader system for managing a financed iPhone, including the ability to restrict apps and services when payments are missed…

If the contract is no longer in good standing, Apple’s system services can place the iPhone in “Restricted Mode,” which blocks access to most apps until the payment or contract issue is resolved, while keeping a small set of apps available…

The code does not appear to cancel, suspend, or otherwise modify App Store subscriptions associated with blocked apps. As a result, a subscription could continue billing even while access to its app is restricted.

Additionally, there isn’t a fixed number of missed payments that automatically triggers the restrictions. The financing provider’s app decides when to lock the device based on its own policies.

Finally, the new framework also introduces a new type of activation lock called “Partner Finance Lock,” which is meant to prevent users from erasing, reselling, or stripping a restricted device for parts.

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It makes perfect sense for Apple to have digital repossession capabilities for leased devices which, after all, users do not own until they are fully paid off.

If you don’t like this financing setup, buy your Apple hardware outright like normal people with basic financial sense.

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Source link: https://macdailynews.com/2026/07/22/ios-27-code-suggests-apple-could-restrict-apps-and-services-on-leased-devices-due-to-missed-payments/

In what marks one of its most significant retail model overhauls in years, Apple is preparing to roll out a broad new device leasing initiative called “Apple Upgrade” on July 28th.

Partnering with Swedish financial tech company Klarna Group Plc, the tech giant will allow U.S. customers to lease most models of iPhones, Macs, iPads, and Apple Watches with low monthly installments, expanding hardware subscriptions far beyond its traditional phone-only offerings.

• Klarna Group Plc (soft credit check required)

• Select iPhones, Macs, iPads, and Apple Watches

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– 24 months: iPhones & Apple Watches
– 36 months: Macs & iPads

• Upgrade early, pay off balance to own, continue monthly payments, or return device

• Apple Watch SE, entry-level iPad, iPhone 16, MacBook Neo

• AppleCare+ not bundled (available as an optional add-on)

For over a decade, Apple’s hardware installment options were anchored by its legacy iPhone Upgrade Program, launched in September 2015 in partnership with Citizens Bank. However, that program was restricted strictly to iPhones and bundled AppleCare+ into every plan.

Under the new arrangement with Klarna, Apple aims to address softening hardware demand and recent supply-chain cost spikes by softening the upfront price tag across almost its entire lineup. Customers will no longer be limited to mobile devices; for the first time, high-end MacBooks and iPads can be structured as multi-year leases directly through Apple Stores and the Apple Online Store.

While the new leasing options make expensive hardware more accessible, the service is said to come with a few notable catches:

• Unlike the legacy iPhone Upgrade Program, base monthly payments on Apple Upgrade will only cover the hardware cost. Users wanting theft, loss, or damage coverage must purchase AppleCare+ separately.

• According to reports, Apple is intentionally excluding lower-priced budget devices—such as the Apple Watch SE, base-model iPad, older-generation iPhone 16, and MacBook Neo—to encourage buyers toward mid- and high-tier hardware.

• With Apple Upgrade launching, Apple plans to stop accepting new enrollments for the original iPhone Upgrade Program, though existing members will be permitted to complete their current terms.

The new program arrives at a critical moment as average selling prices for consumer tech continue to rise. By framing flagship hardware purchases as digestible monthly subscriptions, Apple hopes to keep ecosystem upgrades steady despite broader macroeconomic pressures. Shifting the financing backend to a third-party partner like Klarna allows Apple to expand leasing across nearly its entire hardware portfolio without taking the credit risk directly onto its own balance sheet.

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Source link: https://macdailynews.com/2026/07/21/apple-looks-to-turn-mac-and-ipad-purchases-into-monthly-subscriptions/