Apple is a way off from releasing the iPhone 17 series. Based on current expectations, the company will not be replacing the iPhone 16 Pro Max (curr. $1,179 - refurbished premium on Amazon) or its cheaper siblings until mid-September at the earliest. In the meantime, it is expected to deliver the next iPhone SE, which could launch this quarter as the iPhone 16e with smaller-than-expected dimensions.
Nonetheless, speculation has already begun about what changes Apple plans to make to this year's flagship iPhone release to distinguish them from those it currently sells. One such rumour recently alleged that only the iPhone 17 Pro Max would benefit from a smaller Dynamic Island. According to the regularly reliable Ming-Chi Kuo, this will not be the case.
Writing on X, the long-time Apple analyst reports that the Dynamic Island is not an area that Apple will be altering between the iPhone 16 and iPhone 17 series. Instead, its appearance will be 'largely unchanged', even with the advent of the completely new 'Air' product segment. As it stands, Apple is not expected to transition away from the Dynamic Island across all iPhone variants until towards the end of the decade.
Source(s)
Ming-Chi Kuo via GSMArena