July 23, 2026, 12:51 pm | Read time: 3 minutes
In the U.S., Apple has offered a leasing program for iPhones for years. Now, the company plans to replace the offering with “Apple Upgrade.” With Klarna as a financing partner, users will soon be able to lease not only iPhones but also Macs, iPads, and Apple Watches. However, strict measures loom in case of payment issues. The iOS 27 beta code reveals that contract partners can lock most apps on the iPhone.
Apple Plans New Leasing Model
According to a report by “Bloomberg,” “Apple Upgrade” is set to launch soon in the U.S., replacing the current iPhone Upgrade Program. The report states that iPhones and Apple Watches will have a 24-month term, while Macs and iPads will have a 36-month term. Customers could pay off the device early or exchange it for a new model.
Cheaper devices like the iPhone 16, MacBook Neo, Apple Watch SE, and the basic iPad are expected to be excluded from “Apple Upgrade.” Additionally, the extended device warranty AppleCare+ might not be included in the leasing costs, unlike the current iPhone Upgrade. According to “Bloomberg,” Apple plans to promote the new program with lower monthly costs than existing financing options.
Currently, Apple relies on the U.S.-exclusive Citizens Bank as a financing partner for the “iPhone Upgrade Program.” In contrast, the Swedish payment provider Klarna, known for its “buy now, pay later” offering, is expected to be involved in “Apple Upgrade.”
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App Lock in Case of Payment Issues
The iPhone update iOS 27, planned for September, is currently in the beta phase. “9to5Mac” has found entries in the operating system’s code that refer to a new system called “App Managed Features.” This system allows a financing partner’s or provider’s app to register the iPhone and perform regular checks.
In the event of payment defaults or other contract issues, the iPhone can be put into a “Restricted Mode” via Apple’s system services, locking most apps and services. Until payments resume, the iPhone is only partially usable. Apps and services exempt from the lock include the App Store, Health, Phone, Clock, Wallet, and Passwords.
According to “9to5Mac,” critical apps–such as those for medication or security and important messages–remain available. However, the management system still has some locking capabilities here.
The “Restricted Mode” does not affect any subscriptions associated with locked apps. For instance, if access to streaming apps is restricted, the subscriptions continue.
Also of interest: All planned innovations in iOS 27
Device Lock Even After Reset
It is important to note that “Restricted Mode” is not automatically activated when a certain number of payments are missed. Instead, only the financing partner has the authority to lock the device.
Additionally, iOS 27 features a new type of activation lock called “Partner Finance Lock.” Like the usual activation lock, which prevents a stolen device from being erased and resold or dismantled, the new feature is integrated into the “Find My” service. However, the partner does not have access to the location. The integration merely ensures that the lock remains even after the device is erased.
According to “Bloomberg,” the new “Apple Upgrade” program is expected to launch next week. However, the new app management system for financing partners is currently exclusive to the iOS 27 beta, which will not be released until September. It is not included in the current release candidate version of iOS 26.6. Apple may either delay the launch or integrate the feature shortly before the release of iOS 26.6.