An updated and enhanced Apple TV could be about to launch, with Apple code mentioning a future 3.1 version of the media box -- updating it from its current 2.1 model reference number.
The new Apple TV model is mentioned inside the iOS 5 source code, where product codes specify the existence of the new machine. That's the only solid fact we have to go on, but it would make sense for Apple to update the unit to use its more powerful A5 processor and therefore enable the little media box to finally support 1080p video.
Which would mean iTunes would also have to start supporting 1080p video. Which would mean we'd all need to upgrade our broadband packages. [9to5Mac]