updated 05:15 pm EDT, Wed August 11, 2010
Rumored update would still lack 1080p
Apple is indeed making some major overhauls to the Apple TV, a source claimed this afternoon. One of the most significant is simply a name change, to the iTV. More important, though, is the addition of apps, Engadget said. Unmentioned is whether iPad or iPhone apps will be compatible with the new device, or even if iTV titles will be distributed through the App Store.
The source adds however that the iTV will still be limited to 720p video, despite 1080p now being the de facto HD standard. The restriction is allegedly a matter of "much internal debate" at Apple, but based on the technical limits of the A4 processor, which may be too slow to handle the resolution. The iPad and iPhone 4 are also stuck at 720p.
The iTV is otherwise expected to fall in line with earlier rumors. These have called for an iPhone 4-sized device, costing $99. It could have as little as 16GB of flash storage, but this would be compensated for by the introduction of iTunes streaming, in theory providing competition for services like Netflix. An announcement of the iTV is predicted for sometime this fall.