Apple (Nasdaq:  AAPL) announced a new version of Apple TV,  that will still cost $99.

The new device, which will be available next week, will connect with the company's iPhone 4S using the iCloud, said chief executive Tim Cook.

The Cupertino, Calif. company sold only about 1.5 million Apple TVs last year.

Cook and other senior executives kicked off Wednesday's event in San Francisco, where they are expected to announce a new version of the company's popular iPad 2 tablet.

Apple shares rose $3.28 to  $533.41 in afternoon trading.