While Apple has been pretty much a runaway success across different devices such as the iPad and iPhone, their Apple TV didn’t really take off in a way they expected, even though the second generation Apple TV did work out some of the weaknesses in its predecessor. Word on the street has it that the fruity company is working on some sort of smart TV prototype, at least according to Morgan Stanley’s Katy Huberty. We absolutely have no idea what Apple is dumping into the prototype, although the completed TV is speculated to comprise of TV/Video content, gaming, DVR capability and a slew of other features including app support and FaceTime, all rolled into a single product. If this is true, then expect to hear more rumors heat up the scene concerning a possible Apple Smart TV. How will Google TV react to this if it becomes true?