Apple TV Rumour Emerge : A4, iPhone OS4, $99

Source close to Apple have revealed to tech website Engadget that a new version of the Apple TV is in the pipeline, one that could bring the Cupertino company back in the home entertainment arena.

Interestingly, the device is said to be like an iPhone but without a screen or a battery. It will have 16GB internal memory, the A4 SoC, iPhone OS4 and a selling price of $99.

Engadget says that it will have only a power socket and video out (or HDMI?) and will be able to stream 1080p content. This brings us to our April's fool of 2009 where we suggested that Apple might be planning a £99 iPhone Base unit with a Wireless HDMI feature.

We wrote that it would be "a dumbed-down version of the Apple TV look-alike which will be equipped with WiFi, Wireless HDMI and Bluetooth capabilities but will lack any internal storage".

The current Apple TV carries a selling price of £223 in the UK and is based on Intel's Pentium technology. The device hasn't changed since its launch three years ago and still sports a 160GB hard disk.

Apple TV will be squaring up with Google TV which was recently announced. However Google's venture goes well beyond Apple TV's ambitions as it is a working platform rather than a single product.