Bloomberg reports that Apple is working on a new speaker with a "screen and camera."

This means that Apple could follow in the footsteps of Amazon and Google and offer some sort of HomePod device with a built-in screen. The screen could be used for FaceTime calls or integration with other camera-based smart home devices.

MacRumors contributor Steve Moser corroborates this news by finding the FaceTime and iMessage framework within the tvOS 14.5 beta code. In addition, a new AVFCapture framework related to image capture.

This does not necessarily mean that FaceTime and iMessage will be coming to Apple TV, as the HomePod speaker runs on the same base code as Apple TV. It means that these frameworks will be added to tvOS so that they can be used on two different device families.

Of course, HomePod can already relay audio from FaceTime, but this is different; according to MacRumors, this new code is distinct from the existing FaceTime functionality in tvOS. In other words, this is not a mere update to a feature that has been available since day one.

But there is much more to gain from Apple's smart display besides making video calls with other Apple users. Apple's HomeKit smart home system does not currently have anything like a smart display, so HomeKit users are missing some of the features available in Alexa and Google Assistant.

The smart display acts as a dedicated hub for the smart home, providing visual information not available through regular speakers. It also provides a dedicated screen for displaying live video feeds from smart cameras and tablet-like features such as video streaming and online recipes. [These features are also available on the Amazon Echo Show and Google Nest Hub. In other words, FaceTime is only the minimum functionality offered by Apple's smart display.

Bloomberg's Mark Gurman said there are no plans for an "imminent launch" of Apple's smart display. Therefore, if it does appear, it is unlikely to appear anytime soon.

As for the tvOS code, Apple is probably just laying the groundwork for a future launch; FaceTime will not be included on the Apple TV; and the Apple TV will probably not be a "smart display" at all.

As with anything rumored to be announced by Apple, we will have to wait patiently. It makes sense for the company to release its own smart display. But we won't know until it is actually announced. Or unless there is a serious leak from Cupertino.