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Rumour mill – Cheap Apple TV to get iTunes streaming and be rebranded iTV

Is Apple planning a budget set-top Apple TV box? With a new name?

Apple is launching a sub-£100 version of Apple TV in tandem with an iTunes streaming service later this year. That’s the rumour doing the rounds today, and it’s fairly exciting.

But before you get too carried away about getting your hands on an affordable TV-streaming box that doesn’t look like it was made by a router company, there are a couple of things you should know.

Firstly, the box will only pump out HD signal to the tune of 720p, meaning full-definition is a no-no for now. According to Engadget‘s unnamed “trusted” source, it’ll be running on the A4 chip found in the iPad and iPhone 4; that keeps the price (and, apparently, the resolution) down.

Secondly, it won’t be coming to the UK. That is if the other part of the rumour is to be believed – the box is changing its name to iTV. Even if Apple does try to bulldoze its way over Britain’s second biggest TV broadcasting network, there’ll be a lengthy court battle before we get our hands on it.

It’s about time Apple did something with Apple TV, and some of this rumour (Apple components, iTunes streaming, cheap hardware to encourage buying from the iTunes Store, apps) makes sense. But the rest (the name, lack of Full HD) sounds a bit iffy.

What do you think? Are you gagging for a cheap Apple solution for your TV? Or are you going to stick with the ITV you’ve already got streaming to your telly?