NAB Labs tracks the sales and capabilities of the top-selling smartphones sold in the U.S. (those accounting for 70 percent of U.S. sales – typically the 20 to 25 most popular models in a given calendar quarter), and explores the devices' contents for FM radio reception capabilities. The chart below shows the most recent data available (January through September 2014), which indicates that essentially all of the 64 million smartphones sold in the U.S. during that period were equipped with an FM radio tuner, yet FM reception was activated for users in only about 10 million (18 percent) of those phones. Another 10 percent of those phones have fully operative FM radios in their versions sold outside the U.S., indicating that FM reception could be easily activated by carriers on the U.S. versions, likely without changing the smartphone hardware.
This indicates that four out of every five phones sold during this period are equipped with FM receiver hardware, but their FM radio reception capabilities are not activated by the phone manufacturer or wireless carrier. (Of these non-FM-activated devices, 67 percent are Apple iPhones.)
Why does it matter? Americans are consuming more audio and video on the go than ever before. Smartphones and tablets have turned into walking entertainment centers. But the convenience of on-the-go entertainment can carry a hefty price tag for consumers as wireless companies charge by the bit. With FM radio capability, a mobile device user doesn't have to stream audio, but receives it over the air for free – with up to six times less battery drain than streaming requires. And during crisis situations when cellular networks can go down, over-the-air radio stays on.

Wireless carriers have commented that consumers are not interested in FM radio on their smartphones, but the chart below shows that demand for FM is strong, with sales of FM-equipped smartphones increasing by more than 1,000 percent year-to-year (2Q13 to 2Q14).

To learn more, visit FreeRadioOnMyPhone.org