Testing Product 2
From a software standpoint, there are two ways to approach this design. One is to only release iPhone 8 models with black front sides, and reserve the top area of the display on either side of the notch for the status bar. This would actually be a brilliant way to design the device, keeping the app UI below and moving status bar icons off that portion of the screen. You can see how elegant this solution would be in the images in this article.
The hideous way to approach the new display design is to just have a big notch cut out of top of apps. Sadly, this is apparently the option Apple decided to go with.