Despite Apple’s recent string of successes sparked by the iPod and following through to the iPhone and iPad, there’s one device that stands out for it’s less than stellar performance in the marketplace – Apple TV. Hardly surprising given the unit’s lack of features that can be found on devices much cheaper than Apple’s offering. Now, it seems the company is set to give the insides of its digital media receiver a going over and rename the device to better fit with its line of iDevices.

According to an engadget source, Apple TV will officially be rebranded as “iTV” and will have its innards replaced with the same A4 chip and 16GB of flash memory found inside the iPad and iPhone 4. Unfortunately, since the A4 chip apparently has problems pumping out Full HD content, the iTV will only be able to handle a maximum resolution of 720p. On the upside, the device will finally be getting its own App Store, although it isn’t clear whether iTV apps will be compatible with other iDevices.

Apple hasn’t confirmed any of the rumors surrounding the iTV, but you’d have hope that when the official word does arrive, it includes something tastier than simply the ability to download and use apps – particularly for a device that doesn’t support 1080p or 1080i.