Apple to debut leasing program with remote app restrictions for missed payments
Apple plans to launch a device-leasing service called Apple Upgrade, which could limit access to most apps if users fall behind on payments.
Apple is set to introduce a leasing program named Apple Upgrade next week, covering iPhone, Mac, iPad and Apple Watch models. The service, to be managed by payment provider Klarna, will operate similarly to a long-term car lease, allowing customers to pay off the device early but not qualifying them for AppleCare support.
According to sources, the program includes a feature called "App Managed Features" that could place a device in a restricted mode when payments are missed. In this mode, only nine core applications—Phone, Wallet, Clock, Settings, Health, Passwords, Magnifier, Accessibility Reader and the App Store—would remain functional. The restriction would also prevent factory resets or resale while the device is locked.
Apple Upgrade is expected to launch on July 28, shortly after the company announced price increases for iPads and MacBooks. Subscription fees for apps would continue to be billed even if the apps become inaccessible under the restriction.