I have purchased this "radio" in a toystore for an equivalent of cca $3.50 (100Sk). It operates from 2xAAA batteries and came with a set of headphones. Volume control knob with endswitch is a part of the headphones' cable. There is a tiny lamp integrated at the tip of the "pen".
Operation is simple. After switching it on by the volume knob, it automatically tunes the first FM channel. Pressing the "SCAN" button it tunes in the following channel. Pressing RESET goes back to the first one. That's all. No memory, no frills, but good for ocassional listening to local stations. Of course, the output is mono (i.e. both earpieces of the headphones play the same).
Disassembly is straighforward - unscrewing 2 standard "plastic" screws (although one of them hidden below the shiny sticker but that was too easy) it falls apart. There is no surprise inside - there is only one PCB, containing one IC and a handful of discrete parts. The IC (marked CD9088CB, althought it involved some clairvoyancy to read it) is a far-eastern version of the Philips TDA7088.
This is an example of a real consumer product - low cost, but fair value; and no surprises.