Apple says it won’t limit the capabilities of devices leased through its new Upgrade program if you miss a payment. In an emailed statement to The Verge, Apple spokesperson Brian Bumbery says, “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.”
This confirmation comes after 9to5Mac uncovered code in an iOS 27 beta for a new “App Managed Features” system. This would reportedly allow financial partners to “perform ongoing status checks” on a device, as well as have Apple’s system services put a device in “Restricted Mode” if its owner isn’t in good financial standing. As noted by 9to5Mac, Restricted Mode would prevent users from accessing most apps on their phone, except for basic ones like Phone, the App Store, Clock, Settings, and Wallet.
Apple is partnering with the buy now, pay later service Klarna to launch its Upgrade program, allowing customers to lease a new iPhone, iPad, Mac, and Apple Watch for a flat monthly price with no interest fees. Klarna spokesperson Clare Nordstrom tells The Verge that if customers miss three payments in a row, the company will “terminate the lease agreement and the customer will need to pay the full outstanding balance.”