Apple somewhat surprisingly caved in and offers an FM Tuner in the newest iPod nano 5G after years of neglecting radio on the iPod.
9 to 5 Mac reports now that a source claimed that Apple is actually developing a Radio app for the iPhone and iPod touch that can run in the background like the iPod app.
The current iPod touch and iPhone hardware actually has the FM capability already in the hardware. Currently FM is used for the Nike+ accessories.
With an iPhone Radio app the FM circuits would be used to receive radio stations. Apple may integrate iTunes purchasing with song tagging on the Radio App.
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