A new product code got spotted in iOS 5 pointing to a new Apple TV.
The Apple TV is almost a full iOS device. Apple has it locked down and you cannot install apps. The storage on the Apple TV is very limited and Apple just has the box optimized for iTunes media access and playback. This might change soon. 9to5Mac spotted AppleTV3,1 reference in the iOS 5 file system. This is a new product code and points to a new Apple TV. With Microsoft just having expanded the Xbox into a TV Cable box and Google gearing up for their second attempt at the Google TV, Apple needs to up the ante.
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The new Apple TV box could feature the current top Apple CPU found in the iPad 2 and iPhone 4S and more storage. This would allow it output full HD (1080p) content and maybe Apple allows apps and expands the functionality beyond media - making the Apple TV a full contender with the Smart TV platforms of Samsung and LG.
The Apple TV currently sells for $97.99 on Amazon.