Apple to reportedly launch iPhone leasing with payment restrictions in US

Apple is expected to launch a new device leasing program in the United States as early as next week, according to media reports. The program, dubbed "Apple Upgrade," is designed to allow customers to purchase hardware, including iPhones, Macs, iPads, and Apple Watches, through lower monthly payments.

The leasing terms vary by device: iPhones and Apple Watches will have a 24-month lease period, while Macs and iPads will have a 36-month term. This initiative aims to make Apple's product ecosystem more accessible through a subscription-like model.

Code discovered within a beta version of iOS 18 suggests that Apple is developing mechanisms to manage devices under the leasing program if customers fail to make payments. Devices could be placed into a "restricted mode" if lease agreements are not met, limiting access to most applications.

In this restricted mode, certain essential applications will remain accessible. These reportedly include Phone, Messages, Health, Camera, App Store, Settings, and Wallet, allowing users to maintain basic functionality and communication. Subscriptions for applications that remain accessible may continue to be charged during this period.

Further analysis of the code revealed a new security feature named "Partner Finance Lock." This lock is intended to prevent users from erasing, reselling, or dismantling leased devices that are in default, safeguarding Apple and its financing partners.