According to a "tip" given to 9to5mac, Apple is supposed to be working on a radio application for iPhone which should be published soon.

Technically, all iPhones are already fitted with a compatible FM Broadcom chip.

The Radio.app is supposed to be linked to the iTunes Store in order for Radio.app listeners to directly buy songs they have just listened to from the iTunes Store. For this to work the radio station needs to broadcast RDS and also deliver title information.

This rumour sounds plausible as nearly all Apple devices are fitted with FM receivers. This is one reason for the success of the new Nano. It is fitted with a native Radio.app.

If Apple will offer this Radio.app on the AppStore or integrate it into a firmware update is unfortunately not known.

It should appear in the next few weeks, hopefully before Christmas.

Rumour or not, we'll see...