Apple Inc. (NASDAQ:AAPL) is rumored to be working on a thinner version of the iPhone 17, which could potentially return the company's flagship product to meaningful growth.

What Happened: Apple is planning to introduce the iPhone 17 "Air" in 2025. This model is expected to have a sleeker design than its predecessors, potentially attracting more customers to upgrade their devices.

Gene Munster, managing partner at Deepwater Asset Management, told Business Insider that Apple's biggest iPhone upgrade cycles have coincided with noticeable changes to the phone's design. He believes the thinner iPhone could be a successful hardware refresh for the company.

"The biggest upgrade cycles that the iPhone has had have been when there's been visible changes to the phone," Munster said.

According to the Gurman's newsletter the iPhone 17 "Air" design will be slimmer than previous models, but it won't yet incorporate the larger screens and advanced technology of the Pro lineup.

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The Tim Cook-led company is set to launch the iPhone 16 lineup next month, focusing on its new Apple Intelligence features. However, the iPhone 16 will not feature the new slimmer design.

Munster added that he expects iPhone sales to grow over the next few years, pushing Apple into a "sweet spot of iPhone demand."

However, Apple's previous attempts to change the iPhone's size, such as the iPhone 12 mini and the iPhone 14 Plus, did not yield significant results, according to Gurman.

Why It Matters: The upcoming iPhone 17 "Air" model is part of Apple's broader strategy to innovate and capture market share. However, for the iPhone 16, Cupertino is said to focus on Apple Intelligence, instead of a radical redesign, according to Gurman.

Moreover, TF Securities analyst Ming-Chi Kuo reported that Apple plans to discontinue the iPhone 17 Plus model, which currently accounts for only 5-10% of total new iPhone shipments, in favor of the ultra-slim iPhone 17 "Air" version.

In May, The Information revealed that Apple is aiming to make the iPhone 17 the thinnest iPhone ever, a significant redesign akin to the transformative iPhone X in 2017. This move follows the release of Apple's thinnest-ever iPad Pro.

Additionally, JPMorgan Analyst Samik Chatterjee has a bullish outlook on Apple stock, rating it Overweight and setting a price target of $210, driven by the anticipated AI upgrade cycle with the iPhone 17.

Price Action: Apple's shares were up 0.43% in premarket trading on Tuesday, after closing at $217.53 on Monday, according to Benzinga Pro data.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote