Yesterday, a program allowing prospective Apple consumers to lease new iPhones and Macs was leaked by Bloomberg’s Mark Gurman. New details of the “Apple Upgrade” program—rumored to launch July 28—point to what essentially amounts to an app cut-off system for users who miss their financing payments.
The latest iOS 27 beta contains code for a framework called “App Managed Features,” which would allow Apple to monitor a user’s payments and turn off certain apps if too many payments are missed, as reported by 9to5Mac. And by certain apps I mean most of them—all but nine, that is. With enough delinquent payment, your phone will be put in Restricted mode, allowing access to just the Phone, Wallet, Clock, Settings, Health, Passwords, Magnifier, Accessibility Reader, and App Store apps. That’s one way to turn your smartphone into a dumb phone.
And yes, you will still be paying for all those app subscriptions, even if you can’t access the apps themselves.
The Apple Upgrade program will likely be positioned as an easier way for consumers to afford Apple’s price hikes rather than skipping out on upgrading because devices have become unaffordable. But as with a lease on a car, financing an iPhone or Mac on a long-term financing plan would mean you never actually own your device. Apple Upgrade devices won’t be eligible for AppleCare, either, so good luck to you if you’re a chronic phone-dropper.
Klarna is rumored to handle the lease payments, meaning you’ll need to undergo a soft credit check to be approved. The App Managed Features framework points to the lender itself setting a threshold for how many payments you’ll have to miss before you’re locked out. And yes, Apple has a second layer of security built in that would prevent users from factory resetting their devices or selling them while in Restricted mode.
The ability to cut off app access for missed payments is just another reminder that choosing the Apple Upgrade program really takes so much control of your iPhone out of your own hands. As Gizmodo staff reporter Kyle Barr posed it to me this morning: Can you imagine if your carmaker nuked your brakes if you missed a few payments?
