Apple has relied on its Dynamic Island pill-shaped cutout for the past two iterations of its iPhone Pro models but the long-term goal is transitioning to an “all-screen” iPhone with no physical display cutouts. That day is not relatively close according to the latest report from Korean news outlet TheElec which suggests that the first iPhone with an Under Display Camera (UDC) is expected to launch after 2026.
LG Innotek is now in “advanced development “of its UD cameras which feature the company’s proprietary freeform optic lens system. This new development will ensure optimal light passthrough for better image quality which is one of the current bottlenecks in UD cameras. Apple reportedly received UDC samples from its suppliers but deemed them unsatisfactory.
DSCC's iPhone display roadmap
Ross Young who serves as CEO of the Display Supply Chain Consultants (DSCC) suggests that Apple is expected to transition to an UD Face ID sensor on its Pro series iPhones by 2025 while the first all-screen iPhone with an UD camera and Face ID are reportedly due to launch in 2027.
Source (in Korean)