'Trusted Source' Says iTV Is Apple’s New $99 iOS-Based Apple TV

Apple may unveil a brand new Apple TV dubbed "iTV" this fall, according to a “trusted” Engadget source saying Cupertino is launching an iOS-based box priced at $99, but capable only of 720p output.

Interviewed at the this year’s All Things D conference, Apple CEO, Steve Jobs mentioned the need of a “go-to-market” strategy for companies looking to invest in the distribution of TV content.

The company maintains its stance on the current Apple TV in that it is still just a “hobby,” but clearly has its eye on market trends, just like it does with the rest of it products.

Now Apple seems to have finally found a viable method of selling TV content to the world, by developing a box featuring similar hardware to the iPhone 4, and capable of pushing out 720p video.

Engadget calls the move surprising, with 1080p being the standard expected from Apple.

The site's source reportedly blamed the A4 chip’s inability to handle 1080p, although iPhone 3GS handsets have no problem decoding HD content.

Equally important, the device will be able to run different applications, and will presumably gain a spot in the iTunes App Store, next to iPhone and iPad, according to the source in question.

Finally, the product will be called "iTV", the source says. The iTV dubbing was actually Apple’s initial go at the Apple TV’s name, suggesting Apple has been able to resolve the trademark issues in the meanwhile.

Citing Digitimes Research senior analyst Mingchi Kuo, Digitimes reported earlier this month that Apple was planning to release new products, among which a new Apple TV was mentioned.

Unlike Engadget’s source, Kuo said a new Apple TV using AMD's Fusion solution was to ship in the coming months.

The analyst added that Apple’s new box will not include a hard drive, hinting at the possibility that Apple will also introduce its rumored, cloud-based iTunes.

Kuo’s statements, however, corroborate talks of the new Apple TV employing a user interface akin to that of iOS devices.

Finally, the Digitimes analyst said that Apple’s revamped device will offer support for social networking websites, network multimedia, and the App Store. Kuo added that mass production was scheduled for December.