Apple’s iOS 27 beta includes code for a financing system that can restrict a leased iPhone when the customer falls behind on payments, adding a powerful enforcement tool ahead of the expected Apple Upgrade program.
Bloomberg reports that Apple plans to launch Apple Upgrade in the US on July 28 through a partnership with Klarna, covering most iPhone, Mac, iPad, and Apple Watch models through lower monthly lease payments.
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The planned lease terms include:
- 24 months for eligible iPhone and Apple Watch models
- 36 months for eligible Mac and iPad models
- Early payoff and upgrade options, sometimes with an extra fee
- The choice to keep or return the device when the lease ends
- Approval through a soft credit check
iOS 27 includes a Restricted Mode
Code found in the iOS 27 beta describes a feature called App Managed Features, which allows an approved finance provider app to enroll the iPhone and check the status of the customer’s contract.
When the contract is no longer in good standing, the provider can place the iPhone into Restricted Mode, blocking most apps and services until the payment issue is resolved.
Apple currently allows access to essential apps such as Phone, Settings, Wallet, Health, Clock, Passwords, App Store, Magnifier, and Accessibility Reader. Critical alert apps, including Messages and certain health or safety apps, can also remain available.
The system does not automatically activate after a fixed number of missed payments, since the financing provider decides when restrictions begin under its own policies.
Apple has also created a Partner Finance Lock that can prevent users from erasing, reselling, or dismantling a restricted device. The system works through Find My, although the finance provider does not receive access to the device’s location.
The code does not appear in the current iOS 26.6 release candidate, which suggests Apple will either add it later or delay the leasing program until the required system is ready.
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