Apple Launching iPhone-Shaped Apple TV for $99 - Rumor

Cloud-based Apple TV to boast iPhone architecture (software and hardware), 1080p HD

A tipster has been telling the people at Engadget that Apple has an exciting, new update to announce for its fans, a 99$ iPhone-shaped AppleTV, powered by software and hardware similar to that of the popular handset. Featuring a limited number of ports, the small device will reportedly boast 1080p HD capabilities, it is likely to utilize the A4 chip found in Apple’s iPad, 16GB of local storage, and will focus on streaming content from the cloud.

Allegedly already confirmed by "a source very close to Apple," the details leaked by Engadget’s tipster certainly paint an attractive picture of Apple’s next "hobby." The outlook for the next version of the Apple TV includes a new architecture based directly on the iPhone 4, the report says, therefore, the device will likely share the internal hardware of the iPad, and perhaps the next-generation iPhone, right down to the A4 chip.

This tipster specifically said that Apple’s next TV-device would boast 16GB of flash memory – more than enough, given that it is said to focus on cloud storage. Other key features allegedly include the ability to output video at 1080p, and the quite attractive $99 price tag. It has been described as "an iPhone without a screen," the report goes to mention. Finally, an option to store content locally beyond the included 16GB of storage will also be possible, according to the rumor, by using Time Capsule, or a computer’s hard drive.

Apple hasn’t had a lot of success with the Apple TV, hence the company’s stance on the matter – "just a a hobby." However, everyone will agree that it has potential, especially in the form described above. The Mac maker has already struck deals with many labels, as far as iTunes is concerned, so content will certainly not be a problem for the customer. Integration with MobileMe (particularly iDisk) is certainly not out of the question either. Still, Apple is yet to confirm the device. At this point, such speculation is really just speculation, nothing more.

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