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Most people who own an iPhone pay it off over time as opposed to dropping a hefty sum to purchase it upfront. Apple recently announced a new way to finance its most popular product, and it will be giving anyone who opts to go that route some extra incentive to keep up on their payments due to a “feature” it’s also rolling out.
It’s been close to two decades since Apple ushered in a new era of communication with the release of the iPhone, which revolutionized the mobile game when it came out in 2007. The original model retailed for between $499 and $599 (which got you a whopping 4 and 8 GB of storage, respectively), which was a solid chunk of change back then and still is nearly 20 years later.
As of 2023, around 55% of iPhone users paid for their device in monthly installments compared to the 38% who decided to eat the entire cost at the time of purchase.
The bulk of people who fall in that first category finance directly through their mobile provider as opposed to going directly through Apple. The tech giant has offered its own installment plans to customers, and it recently announced a new approach after teaming up with Klarna for a lease-to-own approach dubbed “Apple Upgrade.”
However, it is accompanied by a new addition to its iOS software that users will definitely want to be aware of.
Apple will be able to disable iPhone apps and features for users who fall behind on payments
The Apple Upgrade program will allow customers to spread out payments for iPhones and Apple Watches over 24 months (iPads and Macs can be paid off over a 36-month period). It is being positioned as the technology equivalent of a car lease, which means you may have to pay an additional fee to keep your device at the end of the term if you don’t want to upgrade to a new one and start the cycle anew
9to5Mac took a peek under the hood in the wake of the announcement by taking a closer look at the iOS 27 beta, which contains code pertaining to “App Managed Features” that permit an “authorized financing or provider app to enroll an iPhone and perform ongoing status checks.”
That is inextricably linked with a new “Restricted Mode” that can be triggered if an owner who falls behind on payments is deemed in violation of their contract, which gives the powers that be the ability to limit access to less than a dozen apps, a list that includes:
- Accessibility Reader
- App Store
- Health
- Magnifier
- Phone
- Clock
- Settings
- Wallet
- Passwords
Messages is notably absent from that list, and the outlet notes users could also be on the hook for subscriptions to apps they won’t otherwise be able to access if they don’t go out of their way to cancel them. There also doesn’t appear to be any defined criteria when it comes to the threshold for the implementation of Restricted Mode, which could seemingly be switched on if you miss a single payment.
It’s also unclear if this will extend to carrier-based plans or only apply to customers who opt for the Apple Upgrade path, but you’ve been warned.