iPhone 16 May Feature a Revamped Face ID System
According to a new DigiTimes report, this year’s iPhone 16 models are expected to feature design changes related to the Face ID system (via MacRumors).

The speculation originated from The Telegraph, which reported a few weeks ago that Coherent, a supplier of Face ID components, was contemplating selling or repurposing a manufacturing facility in Newton Aycliffe, England.
The move came after Coherent lost a significant supply contract with a major customer, believed to be Apple. This development has led to speculation that Apple might be planning significant changes to the Face ID system for the upcoming iPhone 16 models.
Although specific details about the potential changes to the Face ID system remain unclear, early rumours had suggested that the iPhone 16 Pro models could feature an under-screen Face ID system.
However, Ross Young, a well-regarded source in the display industry, later stated that this innovation is unlikely to be introduced before next year at the earliest. Despite this, other modifications to the Face ID system for the iPhone 16 models are still a possibility.

Apple is known for regularly updating internal components in new iPhone generations, and these updates do not always lead to new features or immediate benefits for users.
As the launch date in September approaches, more rumours and details are likely to emerge, shedding light on what Apple has in store for its next-generation iPhone 16 lineup.
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I wonder if there's any durability improvements. There's oceans of "no FaceID" iPhones on eBay and I've seen a few go to a bit of moisture that any pre-FaceID but water resistant iPhone would have gotten through just fine.