(Reuters) - Apple is developing a slimmer version of the iPhone that is likely to be launched by 2025, the Information reported, opens new tab on Friday, citing three people with knowledge of the project.

The potential thinner version is likely to be priced higher than Apple's iPhone Pro Max, and is expected to be launched with the iPhone 17 in September 2025, the report said.

The Cupertino, California-based company is still testing different designs for the device, code-named D23, that could have Apple's latest-generation processor, likely called A19, the report added. 

The expected revamp underscores Apple's need to spruce up the iPhone, the company's most popular product, as it grapples with tough competition from Honor and Huawei in China and Samsung Electronics globally.

Samsung had the largest share of the smartphone market in the first three months of 2024 with 20.8%, followed by Apple's 17.3% market share, according to research firm International Data Corporation.

For the fiscal second quarter, Apple's iPhone sales fell 10.5% to $45.96 billion.

Apple also plans to drop its less expensive model iPhone Plus and intends to launch a cheaper iPhone, a successor to its iPhone SE in the spring of 2025, the report said.

The news come days after Apple unveiled its latest iPad Pro with a new chip for artificial intelligence computing as it rushes to catch up with its Big Tech rivals in a race to dominate the emerging technology.