Apple TV to become iTV, with no 1080p support

Apple will reportedly launch a new $99 Apple TV device that will be renamed the "iTV", but it may lack a major feature that high-def conscious consumers demand: 1080p support.

The iTV will be powered by hardware very similar to the iPhone 4, and will also include iTunes streaming support for apps and custom content.

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Allegedly due to the A4's processing chip's lack of support for 1080 resolution, video resolution will be maxed at 720p -- with no support for 1080i or 1080p.

"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," according to the Engadget article, so it's unsure if the A4 can be fully to blame.

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The new iTV will include support for the Apple iOS App Store, but it's unclear what types of apps the device will support.

Apple continues to see great success with its iPod MP3 players, iPhone smartphones, and iPad tablet devices, but the Apple TV has been one product that has floundered.  As more consumers begin to crave streaming services in the living room, Apple wisely decided it's time to try and shake things up.  However, launching a new device with an A4 CPU, 16GB storage, and other features without 1080i or 1080p will limit its appeal.

The introduction of widgets and apps into the living room has offered viewers an interesting new way to interact with their home entertainment.  I'm curious if Apple's large app library and strong public image will help the company sell iTVs to a small number of fans.

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