Rumor: Next Apple TV will be $99, feature cloud storage

Well part the skies and let the doves descend. It looks like the Apple TV may evolve into a more desirable machine before too long.

Quoting a tip that was "confirmed by a source very close to Apple," Engadget reports that the next incarnation of Apple's set top box will feature cloud storage (awesome), the same internals as the upcoming iPhone (meaning an A4 processor!) and be capable of full 1080p HD. Be still our hearts.

They go on to describe it as tiny, "an iPhone without a screen," and costing only US$99. Yes, one hundred bucks. While cloud storage will be the machine's default, those who want to keep things local can use a Time Capsule as a storage component.

This thing sounds like the Apple TV I've personally been waiting for. How soon can we have it, Steve?
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