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iOS 27 Beta Shows Code That Would Let Lenders Limit Leased iPhones

The beta reveals OS tools that could let financing partners restrict apps and block erasure, a change that raises billing, privacy, and consumer‑protection questions.

Overview

  • The iOS 27 beta, revealed Thursday, contains code for a "Restricted Mode" that would cut a leased iPhone down to a small set of essential apps and widgets when a financing partner flags a contract.
  • A new "App Managed Features" framework in the beta would let an authorized lender app enroll a device and run ongoing status checks that can trigger restrictions under the lender’s policy.
  • The code includes a "Partner Finance Lock" inside Find My to stop erasure or resale of a restricted device while keeping location data from the financing partner, according to reports.
  • The beta does not set a fixed number of missed payments to trigger restrictions and appears to leave the timing and rules to the financing provider, and App Store subscriptions for blocked apps may still charge users.
  • Reports link these features to a rumored Apple Upgrade lease program said to involve Klarna, and advocates and regulators are likely to scrutinize how the tools affect billing practices, privacy, and resale rights.