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Apple TV Set For Update? Apple Cuts Prices, Discontinues 40GB Model

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A major update of the Apple TV may be in the works.

Apple has slashed the price of the 160GB Apple TV to $229 (from $329) and discontinued the 40GB model. Meanwhile, it looks like Apple’s new iTunes LP — a new format for multimedia music bundles — is designed for high-resolution output on the AppleTV.

The iTunes LP content is output at 1,280-by-720, the native resolution of an Apple TV when hooked to a high-definition TV. Apple’s new iTunes Extras (bonus movie material usually included on bonus DVDs and now available for download on iTunes) is also designed to be output at the same high resolution. While this is natural for movie content, it’s a curious choice for music content, albeit multimedia music content, which might naturally be formatted for playing on computers and laptops.

Which all points to a major update for the Apple TV in the near future. The AppleTV hardware has remained essentially unchanged since its introduction, although it has received a couple of software upgrades.

The 160GB model is the only configuration of the Apple TV now on offer. The 40GB Apple TV was previously priced at $229.

Steve Jobs usually refers to the AppleTV as a “hobby,” and not a real business. The choice of movies for the device on the iTunes store remains relatively limited.

Apple TV on Amazon.

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