A known issue with the Wi-Fi connection in some Apple TV units was acknowledged by Apple and replacements are being offered. The issue involves a few third-generation Apple TV devices where the unit either fails to locate, join or secure a Wi-Fi network connection.
Apple alerted its official retail stores, authorized resellers and AppleCare employees about the issue. In a notification, Apple stated that a very small number of 3rd generation Apple TV devices were found to have one of three connectivity issues.
The Apple TV issues are defined as "Cannot locate network", "Unable to join network" and "Dropped or Intermittent connection". The document further stated that if an Apple TV device was found to have one of the issues mentioned, the device would be replaced free of charge, up to two years from the original purchase date.
Apple offered trouble-shooting tips for the Apple Authorized Service Providers including making sure the Apple TV 3rd generation device was up to date with the latest 5.2.1 software or later. Only Apple TV devices with specified serial numbers are eligible for the replacement. This includes devices that end in the letters DRHN. Apple also stated that the serial number's third and fourth alphanumeric characters must have following pairs: H9, HC, HD, HF, HG, HH, HJ, HK, HL, HM, HN, HP, HQ, HR, HT, HV, HW, HX, J1, J2, J3, J4, J5, J6, J7, J8, J9.
If you are the owner of an Apple TV device that has Wi-Fi connection issues and it fits the criteria mentioned, you can take it in to the Apple Store or authorized Apple dealer. They will check the device or give you a new one if necessary.