Apple Says iOS 27 ‘Restricted Mode’ Isn’t for Users Who Miss Payments in New Apple Upgrade Program

Last week 9to5Mac reported on code in the latest iOS 27 developer beta seemingly meant to restrict leased devices after the user had missed one or more payments. When engaged, Restricted Mode limits the device to the following apps:

  • Accessibility Reader
  • App Store
  • Health
  • Magnifier
  • Phone
  • Clock
  • Settings
  • Wallet
  • Passwords

And some limited access to apps like Messages or health-related apps that might have critical messages.

Many people reasonably speculated that this feature was related to Apple Upgrade, Apple’s new device leasing partnership with Klarna, which Mark Gurman spoiled a few weeks ago. But an Apple spokesman confirmed to Emma Roth at The Verge today 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.”

Writing again today, here’s 9to5Mac’s Marcus Mendes:

Apple, however, did not tell The Verge what Restricted Mode is intended for. One possibility is that it was developed for financing programs offered by carriers, retailers, or other partners outside Apple Upgrade, potentially including markets where device restrictions are already used to enforce installment agreements.

In India, lenders have worked in the past with smartphone manufacturers to remotely block financed devices after borrowers missed payments. As The Economic Times reported last year, the Reserve Bank of India (RBI) told non-bank lenders to stop the practice in late 2024, amid concerns about lenders sharing customers’ default information with device manufacturers.

The regulator may now permit a more limited version of the practice. As Reuters reported in May, the RBI proposed allowing lenders to restrict certain functions on financed phones once a loan is at least 90 days overdue, provided the borrower agreed to the measure in the contract and received advance notice.

★ Wednesday, 29 July 2026