The reports first surfaced in the online publication, 9to5Mac.com, which said it has heard that Apple is working on an upgrade that would activate FM radio functionality already built into iPhone hardware. While there are several thousand iPhone applications, at least, that allow for live streaming of FM radio stations via Wi-Fi or 3G connectivity, this would be the first time that a native FM receiver would be operative.
Under the same report in which 9to5mac first broke the story, several reader comments were quick to point out that Apple's rival, Microsoft, has long had HD FM functionality built into its Zune handheld multimedia devices. With HD FM radio functionality on the Microsoft device, songs that play via HD FM radio can be tagged on the device for later download on Microsoft's Zune marketplace.
That also currently outflanks Apple's iPhone; 9to5mac reports that FM on the iPhone is being held up by a reported desire by Apple to make songs taggable and downloadable via the Mobile iTunes Store on iPhones and iPod Touches.