Citing anonymous sources, the Apple news site says the functionality of the application will be similar to what Apple built into the iPod Nano. That includes the ability to pause live FM transmissions and fast-forward when you resume playing.

According to 9 to 5 Mac, the delay in getting the app to market is Apple’s decision to integrate it with the iTunes Store, which is built into the devices. With this integration, people will be able to tap on a song they hear on the radio and buy it through iTunes.

Of course, Apple wouldn’t be the first company to offer some type of FM functionality on the iPhone. Applications like Wunder Radio have been around for over a year and enable people to stream Internet radio to their iPhone and iPod Touch.

The big advantage Apple would have is linking its application to the iTunes Store, which creates the potential for more revenue.


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