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That's right: There's no need to stay connected to a network to keep streaming music from Slacker. The iPhone is in airplane mode here and playing back a cached station.
Caching is done via 3G or via your Wi-Fi network. You can mark stations for caching at a later time, since it takes a fair amount of processing power.
This is the screen that appears when stations are being cached.
In addition to the iPhone and iPod Touch caching, Slacker is releasing a new app for Android. It offers the same features.
This is the station list interface on an Android phone.
One step further, you're taking to a screen with stations laid out visually as tiles.
Cached stations have their own submenu. When you're ready for new music, you can refresh them easily.
This is the Slacker playback screen on an Android phone.
When you back out to navigate other functions of the device, you get this cool widget on the home page.
Slacker is also releasing an app for Palm devices.
And the service is updating its app for BlackBerry to allow over-the-air caching.