Apple May Challenge Google With An Apple TV Makeover

With Google’s TV service set to launch this fall, rumors have Apple (NSDQ: AAPL) working on a major make-over of its own comparable product, which so far has less than dazzled consumers. Engadget cites sources who say a new version of Apple TV will be based on the iPhone operating system, likely opening it up to third-party apps.

That would let Apple match Google (NSDQ: GOOG), which has said that users of its Android-based Google TV will be able to access apps from the Android marketplace. It also could greatly expand the uses for Apple TV, which currently lets users access only very select content from their computers — like their iTunes music collection — and from the internet — like iTunes movie rentals and YouTube clips — on their TVs. A price cut is also planned; the new version will cost $99, down from the current price of $229.

Apple has never released Apple TV sales numbers, although it has said that sales are increasing. But Apple has also acknowledged repeatedly that the product hasn’t exactly taken off. “We