Why does the box say 1080p but the Apple TV actuals outputs only 720p?

Just bought the nice looking little device. Just getting used to the features but noticed that my HD 1080p Pioneer TV indicated that it was only receiving a 720p input signal. Went to settings in Apple TV and then to General and then to About. There it shows that the TV output is 720p at 60hz. Hmmm. Wondering if Apple packaged the wrong Apple TV in the 1080p box. Time to call Apple support.