Apple has clarified that the "Restricted Mode" being developed for iOS 27 will not be activated due to missed payments on the new Apple Upgrade program leases. This clarification comes after reports about a new system called App Managed Features, discovered in iOS 27 beta versions. This system, powered by a daemon named appmanagedfeaturesd, allows authorized financing providers to enroll devices and apply restrictions if a financing agreement is not in good standing.

When activated, Restricted Mode blocks certain apps from launching, while a limited set of built-in apps, the provider's app, and specially allowed applications remain accessible. The system also integrates with Find My for financing-related purposes, implementing a "Partner Finance Lock" (PFLock) rather than granting location access to providers. All these components, including Managed Settings and Mobile Activation, form a comprehensive system for managing financed devices.

While Apple confirmed to The Verge that Restricted Mode is not for the Apple Upgrade program, they did not specify its intended use. One possibility is its application in financing programs offered by carriers, retailers, or other partners, potentially in markets where such restrictions are used to enforce installment agreements, like in India. Despite the clarification for Apple Upgrade customers, the existence of this system raises questions about its future deployment by Apple's financing partners.