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I had FM radio in an older LG phone. Never really worked as advertised. Reception was spotty, and the quality of the broadcast wasn't great, even with headphones.

Traditional FM radio is slowly fading. HD Radios are starting to take hold, and before long everything will be some form of HD, or streamed broadcast.
 
Whether people like it or not, technology moves forward. Sure, places are still using FM broadcasting to allow you to listen to a tv station at a gym, but this too is old tech that will be replaced at some point. Apple can't keep making things to work with legacy systems. If they did, we'd be listening to music on walkman style tape players - with built in fm radios...

For Apple, a big part behind doing what they do is monetizing as many parts of their products and systems as possible. Radio doesn't do that. Frankly, Apple changed the way we consume both music and data and it will be up to 3rd party companies to work within Apple's technology if they want to succeed.
 
FM Radio tunner is one of the most used features for people coming from feature phone to smartphones.

When you have an iPhone, you don't have time for listening to music. And if you really want to listen to radio, you need a data plan for that. Many things like photo sharing and FM radio is done via Internet on the iPhone.

Give it a couple of weeks and apps, and you will forget about radio. If you really want it, there is an app for your favorite station. Of buy an iPod.
 
Because radio sucks. most of it at least. Boy, I sure do love listening to commercials and the same 10 songs put on repeat by every freaking station.
 
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