Image: Apple
Summary created by Smart Answers AI
In summary:
- Macworld reports that Apple’s Upgrade program will not restrict device functionality when customers miss payments, contrary to earlier speculation.
- An Apple spokesperson confirmed there will be no “restricted mode” for defaults on leased iPhones, iPads, Macs, and Apple Watches.
- Previous reports suggested iOS 27 code hinted at potential device limitations, but Apple has now clarified this won’t happen.
The new Apple Upgrade program, officially announced today, could be a way for customers to fit new iPhones, iPads, Macs, and Apple Watches into their budget. But money is tight for a lot of peole, and there’s always a risk of missing a payment. What will happen if you do?
Well, you’ll have contractual and financial issues to deal with, but you won’t have restricted access to your device, contrary to what was stated by a previous report. Apple spokesperson Brian Bumbery told The Verge that, “there will be no restricted mode and/or there will be no limitations put on device functionality due to missed payments or default with the Apple Upgrade program.”
9to5Mac reported last week that iOS 27 contains code that “appears to reveal a broader system for managing a financed iPhone, including the ability to restrict apps and services when payments are missed.” Which led to the thinking that this restriction mode could be enabled by Apple if a lease payment was missed. Also found in iOS 27 was “a new type of activation lock called Partner Finance Lock.”
If the code found by 9to5Mac isn’t for an Apple Upgrade restricted mode, then what is it for? Apple’s response did not provide any clarification. It’s possible that the original intent was to be able to flip the mode on for a missed payment, but then Apple decided against it. Or perhaps the mode was meant as a tool for IT services managing company iPhones issued to employees. In any case, if you’re interested in the Apple Upgrade program, you don’t need to worry about Apple controlling access to your device.
Apple Upgrade is a new leasing program available in the U.S. iPhones and Apple Watches are available with 12 or 24 month terms, while iPads and Macs are either 24 or 36 months. After the lease is up, you have option to renew the lease, buy thedevice outright, or return the device. Learn more about Apple Upgrade.
Author: Roman Loyola, Senior Editor, Macworld
Roman is a Macworld Senior Editor with over 30 years of experience covering the tech industry, focusing on the Mac and other products in the Apple ecosystem. He is also the host of the Macworld Podcast. His career started at MacUser, where he received Apple certification as a repair technician (when Apple did that kind of thing). He’s also worked for MacAddict, MacLife, and TechTV.
