Reports indicate that a code has been discovered in the iOS 27 beta that restricts the use of iPhones with outstanding payments.
Bloomberg, a US economic media outlet, has reported that Apple has partnered with Klarna, a buy-now-pay-later service provider, to launch a new program called 'Apple Upgrade' in the US on July 28th, which will allow users to use devices on a monthly basis. 9to5Mac has also reported that a code suspected to be related to Apple Upgrade, which restricts iPhone usage if payments are missed, has been found in the beta version of iOS 27.
Apple to Launch 'Upgrade' Device Leasing Program With Klarna to Spur Sales - Bloomberg
iOS 27 code suggests Apple could restrict leased devices after missed payments - 9to5Mac
https://9to5mac.com/2026/07/21/ios-27-code-suggests-apple-could-restrict-leased-devices-after-missed-payments/
Apple Upgrade is expected to be marketed as a system similar to car leasing, offering lower monthly payments than traditional installment plans. Klarna will handle the financial aspects, and a soft credit check with minimal impact on credit information is expected to be conducted upon enrollment.
Apple Upgrade users can return or purchase their device at the end of their contract, pay off the remaining balance midway through the contract, or upgrade to a new model, although this may incur additional charges. The offer applies to iPhones, Macs, iPads, and Apple Watches, with contract periods expected to be 24 months for iPhones and Apple Watches, and 36 months for Macs and iPads.
On the other hand, AppleCare, the warranty and support service, is not included in the price, and some products such as the iPhone 16 and MacBook Neo, as well as purchases by corporations and educational institutions, are excluded. Apple has announced that it will gradually phase out new enrollments in the existing iPhone Upgrade Program and regular installment plans for iPhones.
On July 21, the same day Bloomberg reported on Apple Upgrade, Apple-related news site 9to5Mac reported that it had discovered a mechanism in the iOS 27 beta code that appears to allow financial institutions to manage iPhones provided on loans or leases.
Under a system called 'App Managed Features,' certified financial service providers' apps can register iPhones and continuously monitor contract status. If a contract becomes unsustainable due to payment delays or other reasons, the device can be switched to 'Restricted Mode,' disabling most apps except for a few such as Phone, Settings, Wallet, Health, and the App Store.
The number of payment delays that trigger restrictions is not fixed by iOS, and it appears to be designed so that financial institutions make their own decisions based on their policies. Furthermore, a new activation lock called 'Partner Finance Lock' is included, which is intended to prevent the resetting, resale, or parts dipping of restricted devices.
However, Apple has not officially announced that this code will actually be used in Apple Upgrade. Also, 9to5Mac says they could not find similar code in the recently released RC version of iOS 26.6, so it is unclear whether it will be added before Apple Upgrade begins, or whether the start date of Apple Upgrade will be changed.
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in Hardware, Software, Smartphone, Posted by log1i_yk