The new architecture of the device will be based directly on the iPhone 4, meaning it will get the same internals, down to that A4 CPU and a limited amount of flash storage – 16GB to be exact – though it will be capable of full 1080p HD (!). The device is said to be quite small with a scarce amount of ports (only the power socket and video out), and has been described to some as “an iPhone without a screen.” Are you ready for the real shocker? According to our sources, the price-point for the device will be $99. One more time – a hundred bucks.
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Not only will this be priced to sell (like hotcakes), it seems that Apple is moving away from the model of local storage, and will be focusing the new ATV on cloud-based storage (not unlike Amazon’s streaming scheme). For those still interested in keeping their content close, there will be an option to utilize a Time Capsule as an external storage component, but the main course will be all about streaming.
All of this is reported to be powered by the iPhone OS, not the weird, stripped down Mac OS X that the current AppleTV runs. Moving the device into the iPhone OS would help simplify things for Apple, I would think.
Apple executives have repeated the mantra of “The AppleTV is a hobby” several times now, and it is starting to show more and more. The device has been out for three years and has only received a price cut and a hard drive upgrade. The AppleTV software has had two major revisions, but the core functionality — and limitations — haven’t changed that much.
It’s hard for me to justify $229 for the current AppleTV. The AppleTV remains (primarily) an extension of iTunes. The Mac mini is a much more attractive media rig in my opinion. Going that route allows for not only iTunes, but Netflix, Hulu and DVD playback, all in one box for just a few hundred dollars more.
So, is Engadget right about what Apple has in store for the AppleTV? I think they are. And while they don’t spell it out, hopefully Apple will be able to bundle services like Netflix on the device. It would be killer.