Apple is dipping its toes into a new pool for consumer financing, and it might just put some of its iPhone users in a bind—the kind where only a few basic apps will work if payments are missed. This development, outlined from findings in an iOS 27 beta, could change how iPhones are financed and potentially nudge consumers to be timelier with their payments.
What’s new with Apple’s upgrade plan?
In a move likely intended to make owning premium tech less financially demanding, Apple is reportedly launching a new leasing program, creatively dubbed ‘Apple Upgrade’. The program, anticipated to debut on July 28, 2026, in partnership with Klarna, offers to finance a range of Apple devices, including iPhones and Apple Watches, over 24 months, and iPads and Macs over 36 months. But here’s the catch: if you miss a payment, your shiny new gadget might not be so smart anymore.
The ‘restricted mode’ Apple is considering would compromise iPhone functionality for those who fall behind on payments. Imagine holding a state-of-the-art device that only makes calls, adjusts settings, and browses the App Store—it’s like having a Ferrari locked in first gear.
Why this matters for the market
