According to 9to5Mac, Apple is working on a radio application similar to the one in the iPod nano, but for the iPhone and the iPod touch. The novelty with that specific app is its integration to iTunes to construct it possible to buy a song that you like on the radio. that would be the first application that really uses the FM capability embedded in the iPhone and iPod touch. That would additionally be a nice counter against the radio operate in the Zune HD.

Note: the photo is a mock-up.

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[Source] dhiram