Apple Shuts Off One Apple TV, Drops Price On Another

Shortly after Apple's rock 'n roll event last week, the company eliminated the 40-GB version of its Apple TV and slashed $100 off the price of the 160-GB version. According to a report from AppleInsider, Piper Jaffray analyst Gene Munster first noted that the now defunct 40-GB version of the Apple TV had recently experienced a ship time increase to two weeks from one, causing him to predict the product was on its way out.

The 160-GB version of the Apple TV is now available for $229 through the Apple's Web site.

Apple TV is one of the products that could benefit most from a revamp. As Munster notes, there is real possibility in a rental model, as proven by companies such as Netflix. The mail-order DVD rental company has also expanded into streaming content online as well as through a TV top box.

Still, Apple hasn't quite found a way to offer the product in a way that captivates consumers in the same way the iPhone or iPod has.

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But Munster believes that the price drop is likely one step toward working out the kinks in the Apple TV. According to AppleInsider, the price drop may be the first step in a long-term vision designed to create a full immersive multimedia experience for the living room.