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In a serious blow to Intel, an analyst has revealed the new Apple TV will run on ARM architecture rather than on an Intel x86-based chip.
Shaw Wu of Kaufman Bros. also said the new version would run on the same iOS software that powers the iPhone, iPod touch and iPad rather than the current Mac OS X light version and accompanying Front Row software.
Apple tends to build its own A4 processors based on ARM cores for its handheld devices, a capability it gained after the acquisition of PA Semi and Intrinsity. The firm was also one of the first investors in ARM, so the move would not be at all surprising.
Wu also posits that iTV will be able to hook up to the App Store, although it’s still unclear whether viewers would be able to use iPhone apps on their TV or only iTV specific apps.
“We believe the ability to run the same apps makes a lot of sense and believe this feature could be enough to drive significantly more volume for Apple TV. We find the potential to run video game apps on a TV set most intriguing, as it has been proven in the marketplace that there is (a) large market for casual gaming at inexpensive prices,” noted Wu.
Probably the biggest barrier to porting iPad, iPhone and iPod touch apps over to TV, however, would be the lack of touchscreen on the latter, a potentially difficult challenge for developers to circumvent.
Also, a potential deal by Apple to secure 99 cent TV show rentals for iTV could see itself seep into the firm’s more mobile offerings too, specifically for the iPhone, iPad, iPod touch and Mac product lines.
All in all, iTV certainly sounds promising, with even seasoned analysts like Wu gushing over it.
“From our checks with supply chain and industry sources, we believe potential changes could turn Apple TV into a bigger hobby and a multi-million unit seller,” he posited.

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aha, I love betflix, but I really hope no networks go for this, if so, I prefer to just enjoy converting the videos or movies with iFunia video converter pro to my iPad, and then watch anytime everywhere.