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Current leaks suggest a new 48MP telephoto camera could be included, so perhaps thats the reason.
But perhaps its for cost or environmental reasons.
The iPhone 16 Pro
However, Apple is apparently finding it hard to fit the battery and thermal materials into the gear.
So were not sure which leak is right, or if either of them is.
This will apparently be housed in a large, centered camera bump.
The iPhone 17 Air could be a lot slimmer than the iPhone 16
The bigger issue would be China, where eSIMs arent supported.
Still, for now this sounds like it could be an enormously compromised machine if this report is accurate.