It seems that Apple will soon update its Apple TV device and other than making it cheaper, it will also significantly modify the material of the gadget.

It has been reported that Apple TV will be soon known by a new name iTV. Its cost will be $99 and it will also have internal features of an iPhone 4.

Apple will now incorporate ARM-only platform with 16GB flash storage, in place of the x86 components inside the set top box.

Nevertheless, the negative aspect of the iTV is that it will be limited to 720p content. It will still not support 1080p content and this is something that will not be liked by majority of the users.

Since the 3GS could play full HD video and the A4 on the iTV is unlikely to be under clocked, there must be something else preventing Apple from pushing 1080p content on the STB.

Engadget also said that the desktop equivalent of iPhone 4 will also have apps and an App store and this could be the reason why Apple is off-putting its output to 720p.

It is expected that the arrival of Google TV might encourage Apple to look at iTV again and convert it into something very different.