Codenamed "iTV" and not to be confused with Mac TV – is another one of Steve Job’s pet projects to bring a set top box to every home. This attempt of unifying your "iLife" allows you to wirelessly or over 10/100Base-T Ethernet stream you iTunes content including music, audiobooks, videos, TV shows, and movies from as many as 5 Macs or PC’s to a HDTV.

Powering the first Apple TV is a Intel 1 GHz Dothan Pentium M processor and it is equipped with 256 DDR2 SDRAM and a 40/160 GB hard drive. On the back you have HDMI, component video and audio, optical audio, 10/100Base-T Ethernet, USB 2.0 port as well as 802.11n wireless.

This Apple TV could run with or without a Mac tethered during streaming playback. In January 2008 Apple launched the next version of the OS that allowed for direct movie rental and purchasing.