Not all Apple products have a success story and the Apple TV is a clear example. Reports suggest that Apple is all set to launch an updated TV, one that runs on the iPhone OS, completely different from the first, for, hold your breath – $ 99! The current model sells for $ 229 and has been considered to be a “flop” by Apple standards. As opposed to the first Apple TV, which was a box that connected to the TV room and to the network, to enable broadcast of videos presented on computers, the cloud oriented version will be equipped with features of the iPhone and the iPad. It is believed that it will be equipped with a processor Apple A4, the same as in the iPad and the future iPhone 4G.

With the new Apple TV which is touted as “an iPhone without a screen”, users will be able to watch YouTube videos, images from iPhoto and Flickr and video content from iTunes, in both SD and HD quality. With 16 GB storage capacity (to aid priority service cloud and streaming), 1080p output, and small size – it is sure to catch the fancy of Apple enthusiasts. However, it is not expected to be announced in the upcoming Apple’s 2010 Worldwide Developers Conference as the focus will primarily be on the iPhone.

As Wired reported

“In conference calls with investors, Apple has repeatedly referred to its Apple TV as a “hobby,” implying it’s still a niche product that has yet to be a blockbuster hit. If the rumor turns out to be true (and we find it to be very plausible), then this certainly sounds like a compelling revamp of the Apple TV.”

It appears that Apple is planning a launch on the lines of Google TV, the Internet giant’s web content-to-TV delivery system.