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Apple could deactivate leased iPhones remotely for non-payment, report says

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iphone 17 pro on display at apple park

The iPhone 18 is about to launch, along with the final version of its operating system, iOS 27, most likely in September. But a new report says it may arrive with a feature that lets Apple, and third-party lenders, remotely deactivate phones if customers fall behind on payments.

With the iOS 27 beta now widely available, 9to5Mac found code that would let Apple place delinquent iPhones in "Restricted Mode." This would limit users to a short list of widgets and apps, including the App Store, Clock, Settings, Wallet, and Passwords, according to the report.

In theory, 9to5Mac says the system could work like this: Authorized financing partners who lease iPhones to customers get to perform regular status checks to see if the contract is still valid. If a customer falls behind, Restricted Mode would be activated.

The feature is "unequivocally present" in the iOS 27 beta, according to 9to5Mac — and a future update to iOS 26 could bring this feature to older iPhones as well.

SEE ALSO: iPhone 18 news, leaks, and rumors: Release date, iPhone 18 Pro details, more info

The era of internet-connected "smart" devices has had plenty of benefits for consumers, but as consumer advocates have long warned, it also allows brands to remotely turn off devices.

Why might Apple be testing a tool like this right now? Let's dive in.

the iphone 17e on display
Credit: Timothy Werth / Mashable

If you've bought any new tech products recently, you've probably noticed: New devices are getting really expensive. Just this month Apple raised prices on a variety of its products. iPhone prices haven't risen just yet, but Tim Cook has prepared the ground for an "unavoidable" iPhone price hike.

Thanks to the ongoing global memory chip crisis known as RAMageddon, new phones now require a serious investment. The new foldable phones released by Samsung this week were preceded by a new Galaxy credit card program.

Apple is believed to be readying a new leasing program of its own. Bloomberg's Apple oracle, Mark Gurman, says Apple will launch the "Apple Upgrade" leasing program later this month.

Gurman calls it "one of the biggest-ever changes to how the company sells" new devices — and says Apple Upgrade will be part of a partnership with the online lender Klarna, giving buyers a lease-to-buy option. iPhone customers who qualify could make monthly payments over two years.

The code discovered by 9to5Mac also reportedly includes another type of locking mechanism called "Partner Finance Lock," which would stop users from trying to resell a financed device.

Clearly, Apple and Klarna can't let customers who miss payments continue to use leased iPhones indefinitely. But it's also an uncomfortable reminder of how much control Big Tech has over our devices.

Mashable reached out to Apple for comment about Restricted Mode; we'll update this story if this famously taciturn tech giant provides new information.



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