An anonymous source spilled some secrets of the new Apple iTV to Engadget. The new device will feature specifications similar to the iPhone 4, with an A4 processor and 16GB of flash storage, and the device is expected to cost only $99. The iTV will introduce new iTunes streaming services, but unfortunately its internals are not capable of outputting 1080p HD video:
If your brain isn't working right, let us jog it: a trusted Engadget source asserted that the gang in Cupertino would be releasing a $99 version of the set top box, similarly sized and packed with internals akin to that of the iPhone 4 (A4 CPU, 16GB of flash storage), and will introduce new iTunes streaming services the box could take advantage of. Well we've gotten a little more info on the project, and it's not all good. Apparently the box won't be capable of handling (or enabled to handle) 1080i or 1080p video. Instead it will only push out 720p clips. The word -- and cause for much internal debate, we're told -- is that this has something to do with the A4's inability to crank on higher resolution content, but we don't see how that's possible considering the iPhone 3GS could play back full HD video.
Interestingly, this rumor contradicts a report from DigiTimes. The Taiwanese site published on Monday that the new Apple TV would be based on AMD's Fusion.