According to insider sources working on Apple TV, rumors are “suggesting the next version of the set-top box will run iOS applications, have 720p HD video output, and be renamed iTV.” No word yet on pricing or availability. This would place it in direct competition with Roku’s set-top box. Continue reading for a news report.

…the device will use an Apple A4 processor and boast 16GB of storage. It could also be used to showcase the rumored new iTunes streaming service, which would enable people to listen to music and watch movies and TV shows in ‘the cloud’.

[via TelegraphPCWorld]