Apple (NASDAQ: AAPL) May Give Apple TV an iOS Overhaul

Apple (NASDAQ: AAPL) may overhaul its Apple TV product with a new model based on the iOS operating system which powers the iPhone and iPad, according to the New York Times.

The anonymous sources that the NYT reported said that Apple was planning a software upgrade for the set-top box referred to by Steve Jobs as a “hobby”, but it was unclear whether or not Apple would also introduce new hardware. New York Times writer Nick Bilton said that Apple has recently hired new staff that have television backgrounds.

Some of the claims are in line with a rumor recently published by Engadget which said that Apple would introduce a $100 Apple TV based on iOS. The blog claimed that the hardware would be redone as a minimal device described as an “iPhone without a screen” containing only a power connector and a video-out port.

In a number of settings, Apple executives have called its TV product a hobby, suggesting that the device has not been a breakthrough hit. Apple has had difficulty in tackling the set-top box market which is fiercely competitive with companies such as Roku and Boxee offering similar set-top boxes and cable companies and satellite companies offering subsidized set-top boxes.