Steve Jobs does the famous "One more Thing" with the long overdue update to the Apple TV. There were rumours that the new Apple TV would look just like an iPhone except without a screen, but as it turns out it is a fourth of the size of the original and it is black, black plastic. Which is most likely one of the reasons why Apple lowered the cost. Apple's A4 processor now powers the new Apple TV for effortless streaming without any stutters or freezes.

This update is a drastic change from the previous model, as no content is stored on the device, all of it is downloaded straight from iTunes as rentals. On the back of the new Apple TV, there are inputs for one HDMI cable, power cable (no more power brick as the power supply is now built in), optical audio and ethernet. You can control the Apple TV by the supplied aluminum remote or by the Apple Remote app using your iPhone, iPad or iPod Touch via AirPlay. You can get all the fine details here.

To give you an idea of how small this box really is, you can fit it on the palm of your hand.

With all these rumors going around the much anticipated new Apple iTV, Kevin Rose, founder of Digg might have the inside info on just what we should be expected from this new service/set-top box.

iOS TV Applications: Expect to see an iPhone/Pad like marketplace for television applications. Video sharing/streaming/recording apps, interactive news apps, and of course games.
a la carte (app) stations: With Apple's iAds, content producers (eg. ABC/NBC/etc.) can directly monetize and distribute their content. This will eventually destroy the television side of the cable and satellite industry, as your only requirement to access these on-demand stations will be an internet connection. Say goodbye to your monthly cable bill.
.Me Picture/Video sharing: At $99 your parents, grandparents, and friends will have an iTV. Sharing pictures/videos from your iPhone will happen with the push of a button. Imagine getting a notification of new family videos the next time you turn on your TV. My mom will love this feature.
The iPad will turn into one big badass remote control: The iPad will be the preferred input device for the iTV. You'll be able to editing videos, control games, and extend the interactive television experience. Imagine watching monday night football on the TV while viewing/exploring other camera angles on the iPad.

Kevin Rose further states that we should expect iTV to be announced on September for $99.

Source Kevin Rose Blogg