Report: New Apple Leasing Program Has a Big Catch

Almost all apps could be blocked if users miss payments, according to 9to5Mac
Posted Jul 23, 2026 1:26 PM CDT
Report: Apple to Launch Lease Program, With a Catch
Older iPhone models sit on top of empty boxes of newer iPhones in Phoenix, Tuesday, May 12, 2026.   (AP Photo/Dario Lopez-Mills)

Apple's next iPhone deal could come with a powerful catch: miss enough payments, and your phone goes mostly dark. Sources tell Bloomberg that Apple plans to launch a device-leasing program called Apple Upgrade next week, covering most iPhone, Mac, iPad, and Apple Watch models. Code spotted in the latest iOS 27 beta, however, points to a new system, "App Managed Features," that would let Apple—or a lender—remotely block nearly all apps if users fall behind on payments, reports 9to5Mac.

In a so-called Restricted mode, only nine apps would keep working, including Phone, Wallet, Clock, Settings, Health, Passwords, Magnifier, Accessibility Reader, and the App Store. "That's one way to turn your smartphone into a dumb phone," Gizmodo notes, comparing it to an automaker cutting off brakes after a few missed payments. App subscriptions would reportedly still be billed even if their apps are unusable. Similar controls are expected for Macs, and Apple is said to have added safeguards to block factory resets or resales while a device is locked down.

The program, to be handled by digital payment company Klarna, would function more like a long-term car lease than a purchase, though customers will have the option of paying off the device early, Bloomberg reports. Unlike with earlier Apple financing plans, customers will not qualify for AppleCare tech support and replacement of damaged devices. According to Bloomberg's sources, Apple Upgrade will be launched on July 28, just over a month after Apple rolled out major price hikes for iPads and MacBooks.

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