Rumor: AppleTV To Become iTV

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Following up their earlier report that the next iteration of the AppleTV would be a $99, iOS-driven device, Engadget is now reporting that when that device arrives, it’ll be an AppleTV no longer. Come this autumn, prepare to meet the iTV.

Internally, the iTV will be very similar to the iPhone 4, right down to an A4 CPU. According to Engadget’s sources, though, the A4 won’t be able to output full high-def, 1080p video, but will max out at 720p… prompting some truly bitter internal debate in Cupertino’s halls, we’re told.

Why not? Engadget’s source says it’s because the A4 CPU can’t handle 1080p output, but that doesn’t make any sense, given the fact that the iPhone 3GS could play full HD video just fine. And why would there be any internal debate about maxing out at 720p if it was an unavoidable hardware limitation, and not a conscious choice? Are they planning the iTV’s second-generational obsolescence right out of the gate?

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