Recently, we got to know that Apple's rumoured Apple Upgrade leasing program could soon let users lease iPhones instead of buying them outright. However, a discovery inside iOS 27 beta suggests that missing lease payments may cause your iPhone to be remotely restricted until the dues are cleared.
Earlier today, Bloomberg reported that a new Apple Upgrade leasing program is being prepped for launch in the US, allowing buyers to lease iPhones, iPads, and/or Macs. Now, 9to5Mac has made an interesting discovery inside the iOS 27 beta codebase, suggesting the Cupertino brand could lock iPhones if borrowers miss payments.
Dubbed App Managed Features, the code describes an extensive system-wide tool which could allow an authorised financing or Apple Upgrade provider app to enrol an iPhone and perform regular system checks.
This underlying iOS system is said to manage the status of a leased/financed iPhone, allowing vendors to restrict iPhone usage in cases of missed payments remotely.
The report states that Apple’s system services can place the iPhone in “Restricted Mode,” blocking access to most apps until the payment or contract issue is resolved. The list of apps and services added in the App Managed Features blocklist includes:
- Accessibility Reader
- App Store
- Health
- Magnifier
- Phone
- Clock
- Settings
- Wallet
- Passwords
- The Restricted Mode interface itself
Only apps that send critical alerts like Messages, Home and health and safety apps are excluded from this extensive iPhone blocking. Moreover, the system is also said not to cancel, suspend and/or modify App Store subscriptions, keeping usual billing cycles intact.
As for when the iPhone restrictions kick in, the report notes that there is no fixed number of missed payments that will trigger the App Managed Features restrictive system. It might differ from user to user, based on the underlying policies outlined by leasing vendors.
Apple Could Also Add an Activation Lock to Leased iPhones
While App Managed Features is reportedly designed to allow lenders to impose remote restrictions on borrowed iPhones, Apple could also add a more extensive Partner Finance Lock to protect theft, resale, and parts salvaging of leased iPhones.
9to5Mac reports that the Partner Finance Lock system lives inside the Find My hub and acts as a system integrity module that protects iPhones against bad actors. Hence, users will not be able to erase or restore iPhones obtained via Apple Upgrade. The report states that the lender will not have access to the user's location.
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How the Apple Upgrade Program Works
For those unaware of how the Apple Upgrade Program exactly works in the first place, it is said to allow users to lease iPhones, iPads, and/or Macs for a specified period. This will allow shoppers to make periodic payments for their leased Apple products without making any lump-sum upfront payment.
This will also reportedly allow users to either upgrade to the next-gen iPhone, iPad or Mac model or keep the existing product at the end of the leasing term. Lease lengths could vary from 24 months to 36 months depending on the product leased.
Current speculation suggests that Apple Upgrade could launch on July 28, 2026, in the US, applicable to both online and offline purchases. However, there has been no official confirmation yet.
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