Apple has confirmed it will not limit device functionality for customers who miss payments on its new Upgrade program. In an emailed statement to The Verge, Apple spokesperson Brian Bumbery said: “There will be no restricted mode and/or there will be no limitations put on device functionality due to missed payments or default with the Apple Upgrade program.”
The clarification, published July 28, 2026, follows the discovery of code in an iOS 27 beta by 9to5Mac suggesting a potential “App Managed Features” system. That system would reportedly allow financial partners to run ongoing status checks on a device and trigger a “Restricted Mode” for customers not in good financial standing — blocking access to most apps and leaving only Phone, the App Store, Clock, Settings, and Wallet available. Apple’s statement rules out that outcome for its Upgrade program.
The Upgrade program is a lease arrangement that lets customers pay a flat monthly fee — with no interest — for an iPhone, iPad, Mac, or Apple Watch. Apple is partnering with buy now, pay later service Klarna to operate the program. Klarna spokesperson Clare Nordstrom told The Verge that customers who miss three consecutive payments will have their lease agreement terminated and will be required to pay the full outstanding balance.
The discovery of the restricted mode code had raised concerns that Apple could remotely disable leased devices as a financial enforcement tool. Apple’s denial addresses those concerns directly, though the underlying “App Managed Features” framework identified in iOS 27 remains unexplained. It is unclear whether that system could be used in other contexts or by other financial partners outside of the Upgrade program.
Source: The Verge