Apple is reported to be preparing to replace its Composite AV Cable and Component AV Cable with a single cable called the Apple AV Cable, according to PhoneNews.

Aside from getting rid of the need for two separate cables – both of which had unpopular encryption chips – the move is being linked to an iPhone HD.

The consolidated cable will support both component and composite output, allowing users to plug in to both HDTV and SDTV displays.

If used with a high def handset it would support 720p or 1080i out – on an HDTV, not on the device.

PhoneNews also speculates that an HD-out iPhone or iPod Touch will replace the Apple TV.

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