Apple has recently announced its Apple Upgrade Program, which would help customers lease iPhones, iPads, Macs, and Apple Watches by paying affordable monthly instalments. Previous speculations claimed that there would be a new ‘restricted mode’ if people missed payments, restricting them from using all applications except for essential uses. This speculation was based on the fears that Apple will lock down their devices in case there are any missing payments. Apple has denied these speculations completely. The company clarified that customers will continue to have full access to their devices even if they fail to make payments on time. Instead, missed payments are handled under the programme’s existing financing and lease termination policies.
According to a report by 9to5Mac, they spotted the ‘App Managed Feature’ in the latest iOS 27 beta. The report further stated that the feature would enable financial partners to perform periodic status checks on financed devices. Not only that but it also claimed that Apple is developing a ‘Restricted Mode’ that could limit access to most apps if a customer falls behind on payments or otherwise fails to meet their financing obligations.
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The reported restricted mode was expected to allow users only access to essential apps, including Phone, Settings, Clock, Wallet, and the App Store. The discovery raised questions about whether Apple planned to lock down devices for customers who failed to keep up with their payments.
However, Apple has now denied all this speculation related to the restriction of the device for missed payments under its upgrade programme. In a statement given to The Verge, Apple spokesperson Brian Bumbery said, “There will be no restricted mode, and/or there will be no limitations put on device functionality due to missed payments or defaults with the Apple upgrade programme.”
Moreover, if you miss a payment, then it’s automatically rolled into your next month’s payment, and Klarna does not charge any late fees. However, if you miss three consecutive payments, then Klarna will automatically terminate your lease and the customer owes the full outstanding balance minus the value of the device once it’s returned.
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Although there are no penalties for missed payment, you are still governed by the lease termination policy. Furthermore, a missed payment can also have an adverse effect on your credit score.