Apple didn't come up with the notch. Essential and Sharp were first:

https://www.phonearena.com/news/history-of-the-notch-and-bez...

See the Oppo Find X, or the Vivo Nex, for phones with pop-up cameras that avoid the need for a notch.

[1] https://arstechnica.com/gadgets/2018/06/the-oppo-find-x-kill...

[2] https://www.engadget.com/2018/06/12/vivo-nex-all-screen-phon...

It's not a design issue per say, but a space issue. People want less bezel, but still want the front facing camera and other sensors/speakers. The notch is a practical solution to that.

Obviously it looks like a notch, but I don't know why it's not viewed as 2 extra tabs of screen that would otherwise be bezel.