Miss a payment on Apple's new lease plan and your iPhone gets bricked

Apple is launching a device leasing program called Apple Upgrade on July 28, available in the US only at launch. Powered by Klarna, the program lets you lease an iPhone, Mac, iPad, or Apple Watch with monthly payments and the option to upgrade or buy outright at the end of the term. Code buried in the iOS 27 beta, uncovered by 9to5Mac, reveals enforcement tools that go further than anything rival carriers currently offer.

The lock-in

Miss a payment and Apple can activate Restricted Mode on the leased device. In that state, most apps stop working. Only basic functions — calls and settings — remain accessible. Everything else returns once the overdue payment clears.

Leased devices will also carry a feature called Partner Finance Lock, embedded in the Find My app. It prevents anyone from erasing, reselling, or disassembling the hardware — without giving Apple or Klarna live access to the device's location. The combination effectively makes a leased iPhone impossible to offload or reset until the lease is settled.

Because these details come from a beta build of iOS 27, Apple could still revise how either feature works before the July 28 go-live date.

Against the competition

Apple Upgrade positions itself against the 24–36 month installment plans from Verizon, AT&T;, and T-Mobile. One potential edge: the ability to upgrade after 12 payments, similar to T-Mobile Jump. But unlike the old iPhone Upgrade Program, there's no AppleCare+ bundled in. Theft and loss protection will cost extra, which could push the total cost above what a carrier plan works out to, depending on the model.

Budget devices are excluded from the program entirely. The iPhone 16, MacBook Neo, Apple Watch SE, and base iPad won't be available on lease. Lease terms run 24 months for iPhone and Apple Watch, and 36 months for Mac and iPad. Specific monthly prices haven't been disclosed yet — those land on July 28.

Outside the US

No UK or EU rollout date has been announced, per Gagadget. That gap isn't surprising: Apple shut down its own in-house financing product in 2024 partly due to regulatory friction. Whether Restricted Mode and Partner Finance Lock would survive scrutiny under UK consumer protection rules or EU law remains an open question — and likely a key one before any international expansion.