“If the contract is no longer in good standing, Apple’s system services can place the iPhone in ‘Restricted Mode,’ which blocks access to most apps until the payment or contract issue is resolved.”
Subprime auto lenders have bricked cars over late payments for years. Apple just built the same lever into the operating system. Read the second quote carefully: the financing provider decides when to lock your phone, under its own policies, not Apple’s. You will own a device that works only as long as a third party says it does.