Apple's rumored leasing program could restrict apps, lock down iPhones if you miss payments

[midian182]

WTF?! If you're interested in the recent report about Apple partnering with Klarna to launch a hardware leasing program, here's something you should probably know: based on code found in the beta version of iOS 27, those with leased devices who miss payments could have access to their phone apps restricted.

The code, discovered by 9to5Mac, describes a system called App Managed Features. It would allow an authorized financing provider's app to enroll an iPhone and regularly check whether the contract remains in good standing.

Should the customer fall behind on payments or otherwise breach the agreement, the provider could place the iPhone into Restricted Mode, blocking access to most apps and services until the issue is resolved.

The current allowlist includes the Phone, App Store, Health, Clock, Settings, Wallet, Passwords, Magnifier, and Accessibility Reader apps. Programs capable of sending critical alerts, including Messages, Home, and certain medication and safety apps, may also remain available, although the provider appears to control some exceptions.

One particularly unpleasant detail is that subscriptions linked to blocked apps would not necessarily be paused or canceled. Someone could therefore continue being charged for a service they cannot access while their phone is restricted.

There's no fixed number of missed payments that automatically activates the mode. Instead, the financing provider would decide when to impose the restrictions according to its policies.

Apple has also added references to a Partner Finance Lock designed to stop a restricted device from being erased, restored, resold, or stripped for parts. It's integrated into Find My so the lock survives a reset, though financing companies would not receive the device's location.

The findings arrive shortly after Bloomberg reported that Apple Upgrade could launch in the US on July 28. Backed by Klarna, the program would cover most iPhones, Macs, iPads, and Apple Watches, with 24-month leases for phones and watches and 36-month terms for Macs and tablets.

Customers would reportedly be able to pay off a device early, upgrade before the lease ends, or keep or return it when the term expires. Monthly payments are expected to be lower than Apple's existing financing options, though AppleCare will not be included. Entry-level products such as the iPhone 16, Apple Watch SE, base iPad, and MacBook Neo are also said to be excluded.

Apple reportedly plans to stop accepting new customers for its current iPhone Upgrade Program and standard financing once Apple Upgrade arrives. It's worth remembering that neither Apple nor Klarna has confirmed the program, and beta code can change before release.

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Apple's rumored leasing program could restrict apps, lock down iPhones if you miss payments

 

[Dreadcthulhu]

If you can't afford to pay cash for your phone, you can't afford the phone. There are still plenty of decent budget options around that will cover all the basic phone tasks just fine. In general you should only borrow money for things that you both NEED and that tend to appreciate in value (house being the most obvious), and for things that will help you make money.

 

[yRaz]

If you can't afford to pay cash for your phone, you can't afford the phone. There are still plenty of decent budget options around that will cover all the basic phone tasks just fine.

But what will my friends think if I don't have the iPhone 2\frac{d^2y}{dx^2} - 6\frac{dy}{dx} + 4y = 8e^{3x}

Edit
: that could have been funnier but I can't get the formatting to work

 

[m4a4]

I don't know about you, but my first thought was "this is a very Apple thing to do" lol

A very controlling program for their phones, and at least they technically own them this time.

 

[NumberNine]

I'd rather pay cash for an unlocked Pixel running Slate. Earn my business, Apple. Show me value.

 

[LordVile95]

If you can't afford to pay cash for your phone, you can't afford the phone. There are still plenty of decent budget options around that will cover all the basic phone tasks just fine. In general you should only borrow money for things that you both NEED and that tend to appreciate in value (house being the most obvious), and for things that will help you make money.

Does anyone buy a phone outright? Normally people just get a carrier contract that includes the phone

 

[pnntmp]

I really don't understand what exactly deserves our attention here.
If you miss a payment for whatever service - be it Netflix, a mobile service, electricity, Spotify or whatever - the service stops working for you. That's how it should be, otherwise all the service providers would be bankrupt by now.

 

[Dreadcthulhu]

Does anyone buy a phone outright? Normally people just get a carrier contract that includes the phone

I do; everyone phone I have ever purchased for myself and my family members has been purchased outright. There are also no shortage of people on prepaid plans that have no contract. Personally I find the idea of going to your carrier to get your phone odd; would you buy your computer from your ISP? Frankly buying outright and using cheaper prepaid plans have saved me a ton of money.

 

[Plutoisaplanet]

But what will my friends think if I don't have the iPhone 2\frac{d^2y}{dx^2} - 6\frac{dy}{dx} + 4y = 8e^{3x}

Edit
: that could have been funnier but I can't get the formatting to work

I pasted that into a LaTeX formatter and here it is!

 

[axiomatic13]

Apple: "You must now pay us to add taller bricks to the walled garden!" (evil cackle)

 

[LordVile95]

I do; everyone phone I have ever purchased for myself and my family members has been purchased outright. There are also no shortage of people on prepaid plans that have no contract. Personally I find the idea of going to your carrier to get your phone odd; would you buy your computer from your ISP? Frankly buying outright and using cheaper prepaid plans have saved me a ton of money.

But it’s literally cheaper to get a phone through a carrier

 

[wiyosaya]

Yet another nanny in a world already full of nannies.

 

[wiyosaya]

But it’s literally cheaper to get a phone through a carrier

Personally, I like not being bound to a contract.

I cannot imagine anyone who is looking for something that is "Cheap" even considering an Apple device. Probably one of the main reasons that Apple is considering this is because their sales are either hurting or down. Instead of facing the fact that their devices are over-priced, Apple has come up with a means of getting people to pay even more for an Apple device. Clever in an evil and greedy sort of way, IMO.

 

[wiyosaya]

I really don't understand what exactly deserves our attention here.
If you miss a payment for whatever service - be it Netflix, a mobile service, electricity, Spotify or whatever - the service stops working for you. That's how it should be, otherwise all the service providers would be bankrupt by now.

There are some people, like me, who use an Apple app to help them manage their diabetes. If I were to "subscribe" to lease my Apple device, I would be faced with the possibility of losing access to an app that I depend on.

Not, of course, that I would ever do this. Fortunately, I can afford to buy the only Apple device I own when it comes time for me to buy a new one.

I have to wonder if Apple has some sort of ulterior motive for this - like maybe they are trying to get people to commit some sort of fraud or some other "evil" action?

 

[Dreadcthulhu]

But it’s literally cheaper to get a phone through a carrier

Prepaid service is generally a lot cheaper than contract service; the price of getting a phone on contract is built into your service plan and then some. Plus by owning your phone outright you can easily switch carriers when one of them is having a special promotional deal for new customers.

 

[LordVile95]

Prepaid service is generally a lot cheaper than contract service; the price of getting a phone on contract is built into your service plan and then some. Plus by owning your phone outright you can easily switch carriers when one of them is having a special promotional deal for new customers.

Its really not though. Typically sim only deals are more expensive than phone contracts, the phones is effectively a 0% loan and you typically go with whatever carrier has the best coverage to price in the area. Also swapping carriers and getting your number ported over changeable isn’t really worth the pennies you’d save on a difference sim only or PAYG plan that’s still more expensive than a phone contract. Plus the handsets are typically discounted by the carrier

 

[hahahanoobs]

Its really not though. Typically sim only deals are more expensive than phone contracts, the phones is effectively a 0% loan and you typically go with whatever carrier has the best coverage to price in the area. Also swapping carriers and getting your number ported over changeable isn’t really worth the pennies you’d save on a difference sim only or PAYG plan that’s still more expensive than a phone contract. Plus the handsets are typically discounted by the carrier

I pay $25 CAD for Canada wide calling, international text and 20GB data.

$5 for the SIM and free activation online. Up to a week wait if you want to keep your number. If you don't care you get a new one instantly. Can browse the app and change my plan at any time. That's how I went from 3GB to 20GB at same price. The smaller providers compete more. At least in Canada.

Prepaid is king in my books.

 

[ScottSoapbox]

If you can't afford to pay cash for your phone, you can't afford the phone. There are still plenty of decent budget options around that will cover all the basic phone tasks just fine. In general you should only borrow money for things that you both NEED and that tend to appreciate in value (house being the most obvious), and for things that will help you make money.

I totally agree that if you can't afford to pay cash for your phone, you can't afford the phone.

That said, the 0% interest payment plans offered by Apple and some carriers do allow you to keep your $1000+ invested and buy the phone with inflated/appreciated money later (and the time value of money applies too). But again, that's different than using it to buy something you can't actually afford.

 

[LordVile95]

I pay $25 CAD for Canada wide calling, international text and 20GB data.

That is horrendous I get unlimited everything for £10 (19~ CAD) on a phone plan. Even more expensive networks are like £30-40 for unlimited without factoring in deals

$5 for the SIM and free activation online. Up to a week wait if you want to keep your number. If you don't care you get a new one instantly. Can browse the app and change my plan at any time. That's how I went from 3GB to 20GB at same price. The smaller providers compete more. At least in Canada.

You have to pay for a sim? Wtf

Prepaid is king in my books.

You’re paying more than me for literally infinitely less

 

[Neatfeatguy]

Does anyone buy a phone outright? Normally people just get a carrier contract that includes the phone

When I got my daughter her phone and I told the employee at the store I wanted to pay for it all up front; he looked shocked, like no one ever that has come into the store has ever paid for a phone outright.

Doesn't sound like most people do.