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Apple Computer, if the rumors on the street are anywhere near true, is about to drop a bigger bombshell than the iPhone5: a build-it-yourself music service designed to compete head on with Pandora and Slacker—not to mention terrestrial hybrids like iHeartRadio, CBS Online, etc.

According to the Wall Street Journal, “Apple Inc. s in talks to license music for a custom radio service similar to the popular one operated by Pandora Media.” The Cupertino company has scheduled an introduction of their latest smart phone this Wednesday; at this point it’s unknown whether the company will use that event to announce their new music service as well.

Shares of Pandora fell sharply immediately following the WSJ article.

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