Apple's iOS 27 beta code hints at Restricted Mode for financed iPhones with missed payments

Apple is reportedly preparing to launch a financing program next week that will let customers pay for an iPhone, iPad, Mac, or Apple Watch in monthly instalments through Klarna-backed financing. While Apple has yet to officially announce the rumoured Apple Upgrade program, code spotted in the iOS 27 beta suggests the company has been building features to support it.

The code also indicates that Apple has developed a system to handle cases where customers fall behind on their device payments. According to the findings, Apple has introduced a new framework called App Managed Features, which would allow an approved lending partner to monitor whether a customer is keeping up with their instalments. If a user misses enough payments, the lender could place the device into a Restricted Mode, limiting access to all but a handful of essential apps.

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A closer look at the code suggests that Phone, Settings, Wallet, Clock, Health, Passwords, Magnifier, Accessibility Reader, and the App Store would continue to function while the device is restricted. Subscription-based apps would also remain active. Since App Store billing would continue uninterrupted, users could still be charged for subscriptions even if they are unable to access those apps.

Partner Finance Lock

The code also references a second layer of protection called Partner Finance Lock, designed to prevent users from bypassing Restricted Mode. The feature would reportedly stop users from disabling the restriction, performing a factory reset, or stripping the device for parts and reselling it.

One notable aspect of the system is that control would rest with the lender, meaning any exceptions or reinstatements could depend on the financing provider. The code does not specify how many missed payments would trigger the restrictions. As these features were discovered in a beta version of iOS 27, Apple could still modify or remove them before the operating system launches later this year.