Apple could soon introduce a new system for financed iPhones, with code in the iOS 27 beta suggesting devices may be partially locked if customers fall behind on payments.
The discovery follows reports that Apple is preparing a new Apple Upgrade leasing program in the U.S., allowing customers to finance iPhones, iPads, Macs, and Apple Watches through monthly payments backed by Klarna.
Although Apple has not announced the feature, code found in the latest iOS 27 beta offers clues about how it could work.
According to code uncovered by 9to5Mac, financed iPhones could enter a new Restricted Mode if a financing agreement is no longer in good standing.
The system, referenced as "App Managed Features," would allow an approved financing provider's app to enroll a device and periodically check the status of its payment agreement. If payments fall behind, the phone could automatically switch into Restricted Mode.
Rather than disabling the device completely, only a limited set of apps would remain available. The current allowlist includes the Phone app, Settings, Wallet, App Store, Health, Clock, Passwords, Magnifier, Accessibility Reader, and the Restricted Mode interface.
Apps used for critical alerts, such as Messages, Home, or certain health and safety apps, may also remain accessible, though the financing provider appears able to control some of those exceptions.
The code also suggests App Store subscriptions would continue billing even if the related apps are blocked.
The beta does not specify that a certain number of missed payments automatically triggers the restrictions.
Instead, the financing provider's app appears to determine when a financed device should be restricted based on its own policies.
Apple has also added references to a new "Partner Finance Lock," which would prevent a restricted device from being erased, restored, resold, or stripped for parts while it remains tied to an unpaid financing agreement.
Although the feature integrates with Find My, the code indicates financing partners would not receive access to the device's location.
The functionality exists only in the iOS 27 beta, and Apple could still modify or remove it before the software is officially released.