A report from PhoneNews.com indicates that Apple will be including HD video displays as well as HD video output in the next generation iPhone and iPod touch.
They claim to know this because Apple has told Apple Authorized Resellers to begin placing both the Apple Composite AV Cable and Apple Component AV Cable on clearance, and they claim to also have learned that Apple will be consolidating these cables into a single cable which will be known simply as Apple AV Cable:
Apple will remedy this with a cable, which is known simply as the Apple AV Cable. The cable will function similar to the Xbox 360 Component AV Cable. The consolidated cable will support both component and composite output, allowing users to plug in to both HDTV and SDTV displays without the need for multiple cables.
PhoneNews.com also makes references to the iPhone or iPod touch taking place of the Apple TV, at least in a way. With a new HD display and HD video output, users could purchase an Apple AV Dock with an Apple Remote, basically creating a portable Apple TV at a much cheaper price, but that’s if you don’t include the cost the iPhone or iPod touch itself.
As for how reliable the report is, well, we have no idea really. It all sounds feasible, but just because Apple is selling off older AV cables and creating a single new cable doesn’t necessarily mean anything. In all reality Apple should be upgrading the displays in both devices just to keep pace with the rest of the industries top devices that already house high resolution displays.