Apple has stated that devices leased through its newly launched Upgrade program will not face functional limitations due to missed payments or default status. In an email statement provided to The Verge, an Apple spokesperson clarified that no restricted mode or device capability limitations will be imposed on customers who fail to maintain payment obligations.
This clarification followed the discovery of code embedded in an iOS 27 beta that appeared to contain a new “App Managed Features” system. According to reporting by 9to5Mac, this system would have enabled financial partners to conduct regular status checks on devices and potentially trigger a “Restricted Mode” if users were not in good financial standing. The Restricted Mode capability would have severely limited device functionality, blocking access to most applications while preserving only essential services such as Phone, the App Store, Clock, Settings, and Wallet.
The Upgrade program represents a partnership between Apple and the buy now, pay later service Klarna. The program permits customers to lease various Apple devices—including iPhones, iPads, Macs, and Apple Watches—for a fixed monthly fee without interest charges. According to a Klarna spokesperson, the company’s enforcement mechanism involves lease termination if a customer misses three consecutive payments, after which the customer becomes responsible for paying the entire outstanding balance.
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