Apple TV’s new edition to be based on iPhone

The next version of Apple’s streaming media server, Apple TV, is reportedly getting a major revamp.

Likely to be based on the iPhone, it will be much smaller, leaner and lighter, technology website Engadget has reported, quoting a source close to the company. It said the new device will sell for only $99, down from the $230 price tag of the current model.

The new Apple TV - essentially an iPhone without a touch screen - will feature only two ports for power and video output. It may shift away from local storage to cloud-based storage that will allow it to stream 1080p high-definition content straight off the internet.

The device could run on the iPhone operating system and carry only 16GB of local storage compared to the 160GB hard drive that it currently sports. Analysts have said the new and improved Apple TV may become popular with gamers.

Apple will perhaps unveil the new Apple TV later this year, and not at the five-day Apple Worldwide Developer's Conference to be held at San Francisco from 7 June.