Apple to launch leasing program lock for missed payments

Apple is preparing to launch a new device leasing program as soon as next week, a major shift in its financing strategy that includes a system to remotely restrict iPhones for missed payments, according to code discovered in a beta version of iOS 27. The program, expected to be called Apple Upgrade, would replace the current iPhone Upgrade Program and allow customers to lease a wide range of Apple hardware, including iPhones, Macs, iPads, and Apple Watches, over terms of 24 to 36 months.

The company is reportedly partnering with the financial firm Klarna to administer the leases. Similar to an automobile lease, customers would have the option to upgrade to a new device before their term ends, pay off the device to own it, or return it at the end of the lease period.

Code within the iOS 27 beta reveals the technical framework for enforcing these agreements. A system called "App Managed Features" would allow an authorized financing provider to perform status checks on a leased iPhone. If an account falls into delinquency, Apple's system services can place the device into a "Restricted Mode." This mode blocks access to most apps while maintaining functionality for a core set of...