Along with Google announcing its TV solution, Engadget reports that the next version of the Apple TV is on its way. This project has been in progress for a quite some time, long before Google TV was announced.

The Apple TV will be capable of full 1080p HD. It can be used to watch videos from Netflix along with all the content that the current Apple TV shows, like YouTube, podcasts and more.

The Apple TV will run on the same internals as the iPhone 4, down to that A4 CPU and a limited amount of flash of 16GB storage. It is said that the device will be small, just a power socket and video out. Essentially, it will be as small as the iPhone but without the screen.

The size is not the only thing that’s changing. Apple is also moving away from the model of local storage to cloud-based storage. Users will also have the option of using a Time Capsule as an external storage component.

The best part of the Apple TV is the price, $99. With a price tag that low, Apple is going to make a lot of fan boys very happy.

[via Engadget]