Apple's next upgrade plan could lease your devices and lock them after missed payments

Bloomberg reported on July 21, in a story later relayed by Reuters and summarized by 9to5Mac, that Apple is preparing a new U.S. device-financing offer called Apple Upgrade. The reported July 28 launch would broaden monthly payments beyond the current iPhone-only program to cover most iPhone, iPad, Mac, and Apple Watch models, with Klarna backing the leases. Reuters added that Apple and Klarna did not immediately respond to requests for comment.

If that report is accurate, Apple Upgrade would be more than a marketing rename. Apple's current iPhone Upgrade Program is financed through Citizens One, applies only to iPhone, and includes AppleCare+ with Theft and Loss. Apple Card Monthly Installments are different again: they are a 0% APR purchase option rather than a lease, and Apple's support documentation updated on July 21 still says iPhones bought that way are always unlocked and can switch carriers at any time, subject to carrier terms.

The more consequential clue came from iOS 27 beta code. 9to5Mac says Apple has built a framework called App Managed Features that could let a financing partner enroll an iPhone, monitor contract status, and place the device into a Restricted Mode when the account is no longer in good standing. The reported allowlist would preserve essentials like Phone, Settings, Wallet, Passwords, Health, and the App Store, while a separate Partner Finance Lock inside Find My would help keep the restriction in place after erase or restore.

That does not mean Apple will definitely ship device lockouts on July 28. 9to5Mac said it could not find the same code in the iOS 26.6 release candidate that Apple published on July 20, so the enforcement layer may arrive later, change before release, or remain internal for longer. The safest conclusion today is narrower: Apple appears to be testing infrastructure for a broader and more controlled financing model than the installment options it documents publicly right now.

For readers, the practical boundary is still the official one. Apple's published U.S. terms continue to describe Apple Card Monthly Installments as unlocked financing and the iPhone Upgrade Program as a separate iPhone plan with bundled AppleCare+. Until Apple publishes Apple Upgrade terms on apple.com, every July 28 detail should be treated as reported, not confirmed.