New Apple TV will compete with Amazon Echo: Source

Apple TV may be working on Amazon Echo rival
Apple TV may be working on Amazon Echo rival

Apple is taking on Amazon's voice-activated assistant the "Echo" with its latest version of Apple TV, according to VentureBeat.

Earlier this week, The Information said the tech giant was building an "an Amazon Echo-like device with a speaker and microphone" but this is the first report that the device will actually be a part of Apple TV.

"They want Apple TV to be just the hub of everything," a source told VentureBeat.

Apple announced upgrades to its TV last fall, which included bringing Siri to the set-top box. But the new enhancements, VenureBeat said, will solve problems with the existing box, upgrade its ability to process questions, and improve the remote control.

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Piper Jaffray analyst Gene Munster predicted last September that the hands-free updates to Apple TV might head in in Echo's direction.

"The new Apple TV could include passive listening similar to Amazon's Echo that could extend beyond content and search control to HomeKit, which would control smart devices in your home," Munster wrote in a note.

Apple did not immediately respond to CNBC's request for comment.

Read VentureBeat's entire report