Leading technology company Apple Inc (NASDAQ:AAPL) made waves with the release of the iPhone in 2007, which transformed the smartphone market.

A new report shows Apple could be preparing to make a major change to the iPhone for future models.

What Happened: Apple released the iPhone in 2007 and today it is a crucial revenue driver for the company, as shown in the company's recent first-quarter financial results.

Future iPhone models from iPhone could include a foldable version of the popular smartphone according to a report from The Information.

According to the report, Apple is working on several foldable prototypes of the iPhone that would fold widthwise, similar to a clamshell.

The Information said a launch of a foldable could mark a major hardware design change for the iPhone.

Prototypes and tests from Apple do not guarantee a future launch of a foldable iPhone. However, the report notes Apple CEO Tim Cook spoke to engineers about a foldable iPhone back in 2018, suggesting it could be a key priority of his.

If a foldable iPhone does make it past the prototype stage, it likely wouldn't be released until after 2025, according to the report.

A recent Vanity Fair interview with Cook made mention of rooms of product tests.

"So he (Cook) strolls past restricted rooms where foldable iPhones and MacBooks with retractable keyboards or transparent televisions were dreamed up," the article reads.

Related Link: 6 Apple Analysts Size Up Q1 Results, iPhone Sales: 'Major Step In The Right Direction,' 'Some Good And Bad News'

Why It's Important: Jobs unveiled the iPhone in 2007 and discussed how the product would be revolutionary for Apple.

"iPhone is a revolutionary and magical product that is literally five years ahead of any other mobile phone," Jobs said at the time. "We are all born with the ultimate pointing device — our fingers — and iPhone uses them to create the most revolutionary user interface since the mouse."

The launch of a foldable iPhone from Apple could come as competing smartphone companies have launched foldable phones, including Samsung Electronics (OTC:SSNGY) with its Samsung Galaxy Z Flip. Google and Motorola have also released foldable smartphones.

A Financial Times report in December showed the foldable smartphone market was only around 1% of all global smartphones with Samsung controlling around 73% of the market.

Apple working on prototypes of foldable phones could suggest increased opportunity for the market and more demand from consumers.

AAPL Price Action: Apple shares trade at $189.14 versus a 52-week trading range of $143.90 to $199.62. Apple shares are up 25% over the last year.

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