Apple is working on a radio application for the iPhone and iPod touch that would utilize unannounced radio capabilities in the devices, according to a report from 9to5Mac. Citing an unnamed source, the site said that Apple is working to tie in song-tagging to the Mobile iTunes Store for purchasing songs.
The capability could either be released as a standalone app that would be able to operate as a background process like the iPhone's iPod application, or it could be incorporated directly into the iPod application itself.
According to the report, iPhone and iPod touch has had an FM receiver built into it for at least a couple of generations - it's the same mechanism used by the Nike+ product line to transmit data from your shoes to the iPhone.
Many users and would-be users have long clamored for there to be a radio built into both the iPod and iPhone products lines for years. Apple finally broke that barrier with the release of the most recent iPhone nano, which incorporates a radio with song tagging and the ability to pause live radio.