Morgan Stanley analyst Katy Huberty reports that Cupertino is developing a "Smart TV prototype" that could provide Apple with an opportunity to meld TV and video programming, gaming, DVR functionality, and even /-style apps and video chat into a single product.
As by Apple Insider, Huberty told investors in a Friday note that Morgan Stanley's "checks in Asia" hint that Apple is working on a new entertainment device that might dwarf the capabilities of its Apple TV media streamer, which is already selling well.
Introduced in October 2010, the routes iTunes, Netflix, and other Internet-based content to the living room. The tiny, $99 device has proven more popular than its larger and pricier predecessor. By late December 2010, Apple had already .
Old Rumor, New Spin
Huberty isn't the first analyst to suggest that an Apple-branded television is in the works. Way back in August 2009, Piper Jaffray analyst Gene Munster predicted that Cupertino , according to Fortune's Philip Elmer-DeWitt. Munster later , stating that an Apple HDTV set would arrive as early as 2012.