The recent Google TV announcement had many questioning what future of the Apple TV would be. Would they scrap it all together? Update the software on the existing OS and hardware platform? Or would they go an entirely different direction?

It looks like the answers is definitely the latter.

Those gadgeteers over at Engadget always have their ear to the ground, and this time they’ve picked up a major tip from a source very close to Apple. 

The next-generation Apple TV will be built around the iPhone v4 platform all the way down to the A4 processor, OS and 16gb of on-board Flash storage. The device won’t focus on local storage, but instead on cloud storage and streaming. Time Capsule compatibility will be there for those looking to access large local network stores, but that won’t be the prime function.

The craziest part of these so called confirmed rumors? A price tag of $99 out the door and you’ll be pimping your TV Cupertino style. What do you get for that hard earned Benjamin? No screen. No extra ports. Just a small case, power port, and HDMI video port. 

They’re calling it an iPhone without the screen and cell radio. The iTunes app store is a must, but whether iPhone or iPad will run natively, though I can’t imagine iPhone Tetris will look great on a 50” screen. 

A WWDC announcement is not expected, but the tipster says development is moving forward at a steady pace. So will this be the Google TV killer, a nice little box for Apple fan-boys, or the next hacker’s black box dream? Regardless, great things are in everyone’s future if they’re interested in web content on the TV. 

Stephen Hopkins

Stephen Hopkins is chief technology editor for EH Publishing. He writes product reviews, features, and focuses heavily on 3D TV, iPhone and iPad apps, and digital content.