Dynamic Island

Dynamic Island is a feature of iOS 16 which was developed by Apple to support certain "Pro" iPhone models. It was introduced in September 2022 with the iPhone 14 Pro and 14 Pro Max to turn the pill-shaped "hole-punch" in the OLED display into a notification feature.

Development
Industry reports indicated that Apple would be moving the Pro models of the forthcoming iPhone 14 product line from a notched screen design to a multiple "hole-punched" design (at one point dubbed the "exclamation point") to accommodate the front-facing cameras and various sensors in 6.1 and 6.7-inch models. On September 7, 2022, this was revealed to be integrated into a single pill-shaped feature, which was announced as the "Dynamic Island".

Teardown videos of the iPhone 14 Pro Max found that the TrueDepth camera had been repositioned to fit the cutout shape for the Dynamic Island.