Mostly budget-end phones have FM radio capabilities, and it might be for those living in countries where radio is the primary medium for broadcasting information. These phones don't have a proper antenna to capture FM signals, so you need to plug in a headphone cable so that the cable can capture these signals. You can just use the cable with no speaker/headphone connected to it and use the phone's speaker to play the audio. Visit GSM Arena to check if your phone can use FM radio, or see if a FM radio app is already installed on your phone.
For anyone asking why there is a Zeiss sticker on my phone, this is part of a gag introduced in an earlier video essay, "Are Smartphone-Camera Partnerships Meaningful?"
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