Apple has officially stated that it will not activate a 'restricted mode' on devices leased through its new Upgrade program if customers miss a payment. In an emailed statement 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 default with the Apple Upgrade program.'

This clarification comes after 9to5Mac discovered code in an iOS 27 beta for a new 'App Managed Features' system, which would allegedly allow financial partners to perform ongoing status checks on a device and trigger a 'Restricted Mode' if the owner's financial standing is less than stellar. That mode, as described, would limit the phone to basic apps like Phone, App Store, Clock, Settings, and Wallet - essentially turning your thousand-dollar supercomputer into a glorified flip phone.

Apple is partnering with the buy now, pay later service Klarna for its Upgrade program, letting customers lease iPhones, iPads, Macs, and Apple Watches for a flat monthly fee with no interest. Klarna spokesperson Clare Nordstrom told The Verge that if customers miss three consecutive payments, the company will 'terminate the lease agreement and the customer will need to pay the full outstanding balance.' So, no restricted mode - just a sudden, expensive reminder that you owe money.