Code in iOS 27 lets Apple deactivate leased iPhones, report says

Apple is preparing to introduce a new control mechanism within the upcoming iOS 27 operating system. Code discovered in the current beta version suggests the company will gain the ability to remotely restrict the functionality of iPhones if a user fails to make payments on a leased device. This "Restricted Mode" would limit access to a small set of basic tools, such as the App Store, Settings, and Wallet, while locking out most other apps and services.

The feature appears tied to new leasing programs that involve third-party financing partners. Under this model, lenders can conduct regular status checks on the device's contract validity. If a user falls behind on their financial obligations, the phone transitions into this restricted state. Additionally, the software includes a "Partner Finance Lock" mechanism designed to prevent the unauthorized resale of devices that are currently under a financing agreement.

This development comes as Apple expands its footprint in consumer financing. Industry analysts expect the company to launch a new leasing initiative in partnership with Klarna later this year. By implementing these digital locks, Apple and its partners aim to mitigate the risk associated with hardware-based lending. This move marks a significant shift in how the company manages the lifecycle of the devices it puts in consumers' hands.

While smart devices offer clear benefits, this capability highlights the degree of control companies maintain over the hardware users possess. Privacy advocates have long pointed to the risks of remote device management, noting that software can effectively disable hardware at the manufacturer's discretion. As the line between hardware ownership and service subscriptions continues to blur, this software update serves as a concrete look at how that power is structured in the mobile industry.