Apple won’t turn on any ‘restricted mode’ for missed lease payments

Core Impact Points

• Apple's Upgrade program allows customers to lease new devices with no interest fees, but some feared device restrictions for missed payments.
• The company has confirmed that there will be no 'restricted mode' or limitations on device functionality due to missed payments or default.
• This decision may impact the US market, where consumers are increasingly turning to leasing options for expensive electronics.
• Apple's partnership with Klarna, a buy-now-pay-later service, will continue to offer customers a flexible payment plan with no interest fees.
• If customers miss three payments in a row, Klarna will terminate the lease agreement and the customer will need to pay the full outstanding balance.