Apple Smart TV Prototype In Works Tip Insiders

Further rumors of an Apple HDTV have emerged from shadowy supply-chain sources, with one analyst suggesting that prototypes are already in the works. According to Morgan Stanley analyst Katy Huberty, "checks in Asia suggest Apple is working on a Smart TV prototype," going on to predict it will grab a 1-percent share of the global TV market by 2013.

The exact nature of the Apple "Smart TV" is unknown, but it's not the first time we've heard of the company planning a set bearing its branding. Apple was rumored to have spent $3.9bn on displays, including large-scale panels suitable for HDTVs, and other analysts have predicted a 2012 release for the new range.

Still, a likely direction for Apple to look is integrating the headline features of the existing Apple TV STB with elements from the iPad 2. That would obviously include streaming video, audio and images, along with content rentals, but could also see the debut of the App Store on a large screen and FaceTime video calling from an embedded webcam.