APPLE SAYS IOS 27 RESTRICTED MODE WON’T APPLY TO LEASES

Code in the iOS 27 beta described a Restricted Mode that could block most apps on a financed iPhone when a customer fell behind on payments, 9to5Mac reported on July 21, 2026. Apple later told The Verge it “will not activate Restricted Mode over missed payments of the Apple Upgrade leasing program,” which launched July 28, 2026.

Earlier on July 21, Bloomberg had reported that Apple was weighing a leasing program with Klarna.

What the beta code described

The code called the system “App Managed Features.” It let an authorized financing or provider app enroll an iPhone and run ongoing status checks on it.

If a contract slipped out of good standing, Apple system services could flip the phone into Restricted Mode. Most apps would stay locked until the payment or contract problem was sorted out.

The beta had a fixed list of apps that would survive the lockout: Accessibility Reader, App Store, Health, Magnifier, Phone, Clock, Settings, Wallet, Passwords and the Restricted Mode screen itself. Apps that send critical alerts, including Messages, Home and some medication or safety apps, might also stay available, though the provider appeared to have some say over those exceptions.

There was no set number of missed payments that would trip the switch. The financing provider’s app would decide based on its own policies.

One detail would have stung: the code did not appear to cancel or pause App Store subscriptions tied to blocked apps. A locked app could keep billing.

The beta also contained a new activation-lock type called “Partner Finance Lock,” meant to stop a restricted phone from being erased, resold or stripped for parts. It lived inside Find My, but the financing partner would not get the phone’s location. The integration was there to keep the lock in place after an erase or restore.

9to5Mac said it could not find the same code in the iOS 26.6 release candidate, and cautioned that the findings reflected the beta’s current state and could change before release. One reader in the comments asked whether Apple could restrict phones for other reasons, and in other countries.

Apple Upgrade arrives, with a denial attached

On July 28, 2026, Apple announced Apple Upgrade in the United States, available online, in the Apple Store app and at its retail stores. It replaces the iPhone Upgrade Program and iPhone Payments.

The program covers iPhone, Apple Watch, Mac and iPad. Starting monthly prices are $17.99 for iPhone, $11.99 for Apple Watch, $24.99 for Mac and $11.99 for iPad. iPhone and Apple Watch leases run 12 or 24 months, while Mac and iPad leases run 24 or 36 months.

Klarna said customers apply through Apple and manage their payments in the Klarna app. It also said it finances the purchase and earns a financing return on the scheduled repayments.

Wirecutter reported that applying involves a soft credit check, and the first payment is due 30 days after the device is available for pickup or shipment.

9to5Mac followed up. In iOS 27 beta 4, App Managed Features had turned up in Settings under a Developer-mode testing section. The reported framework included a system daemon that could enroll devices, check financing status and apply restrictions when an agreement was not in good standing.

Then came Apple’s statement to The Verge that Restricted Mode would not be activated over missed Apple Upgrade payments.

In October, PCMag reported that its sources said the same thing: Apple Upgrade leases would not trigger the reported app restrictions over late payments. PCMag quoted Klarna as saying that if a payment cannot be collected, it will retry, and “If that also fails, Klarna will attempt to charge a backup payment method on file.” After multiple failed attempts, PCMag reported, missed payments may be sent to debt collection and show up on a credit report.