According to the well-known leaker Ming-Chi Kuo, Apple is actively testing a rather large 9-inch foldable device, which could hint at the prioritized development of a possible iPhone-iPad hybrid instead of a more compact smartphone in this new form factor.
https://www.notebookcheck.net/Leaker-claims-that-Apple-is-testing-a-9-inch-foldable-device-possible-iPhone-iPad-hybrid-won-t-launch-before-2025.611276.0.html