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Hot Rumor: New Apple TV will run iPhone OS 4, use cloud storage, cost just $99

Engadget just published a hot tip that will make the living room war with Google TV a lot more interesting. According to the tipster, Apple TV will be back with a vengeance, with a new model running the iPhone OS, supporting 1080p video, and costing just $99.

Engadget just published a hot tip that will make the living room war with Google TV a lot more interesting. According to the tipster, Apple TV will be back with a vengeance, with a new model running the iPhone OS, supporting 1080p video, and costing just $99.

While it would include 16GB of flash storage, the new version apparently will use cloud-based storage for most viewers' needs. (Sooner or later, Apple's purchase of Lala will need to pay off.) As a result, the unit will be a lot smaller, though buyers could still use Apple Time Capsules for external storage. Engadget speculates that since it will run the iPhone OS, apps from the smartphone could also run on your HDTV, which would extend the iPhone-Android war onto a different type of screen.

If true, is this a game changer in the battle for living room supremacy? Let us know your thoughts in the Comments section.