Internally, the box is supposed to be comparable to the hardware found in an iPhone 4, complete with an A4 processor and 16GB of flash storage on board. Apparently the new iTV won't be getting 1080p or 1080p video support after all, as previously expected, but it will continue to output 720p video, which matches the current capabilities of iTunes. It will also get new iTunes streaming services services and access to the App Store, though it's unclear if it will be able to run existing iPad and iPhone apps.
Engadget says we can expect an announcement sometime this Fall. The refreshed box will reportedly hit the market later this year at an aggressive $99 price point, which is considerably less than $229 Apple is currently charging.