Rumor has it that the new Apple TV, renamed iTV, will be able to use applications from the App Store. It’s unknown whether it will use iPhone, iPad, or a new version of apps entirely, but if the rumored $99 price tag is real, then it will be a serious competitor to Google TV and other set-top boxes in the same entry-level price range.
On the downside, the new iTV is supposed to be carrying the same A4 chip as the iPhone 4, and therefore limited to playing videos with a maximum resolution of 720p. (Sorry, no 1080p content.)
The ability to use existing applications from the App Store would open a whole new world of possibilities, such as Hulu Plus, Netflix streaming, and a gaggle of other media-related services. This could be a killer feature for a low-priced HTPC.