Apple developing radio app for iPhone and iPod Touch

9 to 5 Mac reports that it has received a tip claiming that Apple is in the process of developing an application to bring FM radio functionality to the iPhone and iPod touch. It’s also reported that you’ll be able to listen to the radio in the background, allowing you to use apps at the same time, just like you listen to music synced to your iPhone or iPod touch.

The holdup on this app is that Apple is trying to integrate the Mobile iTunes Store purchases into the functionality of the program. For instance, if you like a song you are listening to on the radio (and that station supports tagging and you are in the US), you will be able to push a button and see the song (and all of the information around it) in the iTunes Mobile store. With another click, you’ll be able to make a purchase. This is an extension of the Song Tagging feature used in the iPod Nanos. Perhaps they could even add some Shazam technology to help with those stations that don’t support tagging.