If Engadget's sources are to be believed, Apple TV may be taking on a completely new form.
According to reports, it's going to be a much smaller device, described as what is essentially "an iPhone without a screen." It's rumored to run on Apple's A4 chip and only have two ports: a video out, and a port for a power supply.
Though the rumor says it will only have 16GB of internal flash memory (though it's not hard to believe that there will be more than one SKU) the device will be able to display at a full 1080p, like a Blu-Ray. Its price point is rumored to be $99. Again, it's very likely that there will be several models, and that the sub-$100 device is only the introductory one.