Apple TV has been around collecting dust, and the gang at Cupertino has been tweaking it. But tweaking doesn’t seem to be going very well actually. Engadget has a source that says the upcoming release will have something similar to the iPhone 4, which means an A4 CPU with near 1GHz speed, 16GB of flash storage, and perhaps 512MB of memory. There’s even a possibility of new iTunes streaming services that the box could take advantage of. But the sad news to this update is that there won’t be Full HD support. The new version could only punch out 720p quality videos. But this is very doubtful of being hardware limited, or locked down internally for some stupid reasons like overheat perhaps. This is because the iPhone 3GS can play back full HD videos with no sweat.

But the good thing is that this new update will have support for apps, and presumably an App Store entry. Apple is also officially changing the name of the device to iTV, abandoning the current moniker in favor of something more in line with its current i-device lineup names.

SOURCE via Engadget