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.