Apple working on a Next-Gen Apple TV

For those of you who thought Apple TV was dead…you’re wrong. Word on the street is Apple plans on bringing a new model to market, only this time with more features, and a lower price tag.

Engadget says a source very close to Apple has confirmed Apple TV generation 2 is in the works, and has been for some time. The device itself will be based on the architecture of the soon to be announced iPhone 4. Even the guts will be the same, including the A4 CPU and a limited 16GB to be exact. Why so small? Ah, cloud based storage my friend! The device is said to have only a power port and a video out port, other than that a clean design with no screen.

The real shocker has to be the price. $99. There we said it. A cool one hundred dollars for a device that will be capable of playing full 1080p video!

Apple isn’t expected to announce anything on Apple TV 2 at the upcoming WWDC, and will instead focus on the new iPhone. But rest assured, Engadget’s source says development is certainly underway.

[Via Engadget]