Analyst: Next-Gen Apple TV Has ARM Processor, App Store Support

An analyst with Kaufman Bros. issued a note to investors today, signaling that the "biggest potential change" to the upcoming new Apple TV is the addition of an ARM architecture processor tasked with running a variant of the iOS.

Shaw Wu said that sources indicated there will be a spot for Apple’s forthcoming set top box in the iTunes App Store, but failed to specify exactly how customers would handle the 225,000 touch-centric iOS applications.

One theory puts a new Apple Remote - with touch-based controls and an accelerometer - in the hands of every future iTV owner.

"Our sources indicate there is some debate within Apple whether to allow this or not, or to have it run only Apple TV-specific apps," Wu said, according to a report by AppleInsider.

"We believe the ability to run the same apps makes a lot of sense and believe this feature could be enough to drive significantly more volume for Apple TV,” added Wu.

“We find the potential to run video game apps on a TV set most intriguing, as it has been proven in the marketplace that there is (a) large market for casual gaming at inexpensive prices," the analyst noted.

The Kaufman Bros. analyst reaffirmed rumors of Apple negotiating with networks to offer 99 cent TV show rentals, saying that such an offering would benefit Apple’s entire product line, not just the Apple TV.

"From our checks with supply chain and industry sources, we believe potential changes could turn Apple TV into a bigger hobby and a multi-million unit seller," the analyst wrote.

"And perhaps be a precursor to a bigger effort to address the home entertainment space down the road."

Apple, however, may have even bigger plans. Some speculate that iTV (as the new product is believed to be named) is only a stepping stone in Apple’s ultimate plans of offering a full-fledged media center.