Apple Drops 40GB Apple TV and Discounts 160GB Model to $229

Apple has quietly discontinued the 40GB Apple TV overnight and reduced the price of the 160GB model down to $229. Previously, the 40GB and 160GB models were priced at $229 and $329, respectively.

The Apple TV hardware has remained essentially unchanged since its introduction with the exception of hard drive size. Apple has always referred to the AppleTV as a "hobby" project and is still exploring ways to expand the market. Meanwhile, a new report claims to have found evidence that Apple's new iTunes LP bundles were likely formatted specifically for the Apple TV. This would suggest we should see a major Apple TV software update in the near future.