This basically means that instead of creating a stream by connecting to Wi-Fi network, to Apple AirPlay enabled devices will be able to communicate directly with each other minus the third party. Android devices already boast of this capability as they normally stream music wirelessly using Bluetooth technology.
Apple is said to be announcing this feature at its rumoured September event when it will unveil the next iPhone. Apple had originally introduced AirTunes in 2004 and later with iOS4 it renamed it AirPlay as it added support for video and then with iOS 5 the company added Airplay mirroring via an Apple TV and more recently the company added this capability to its desktop OS, OS X Mountain Lion.
Remember, Apple has achieved a similar feat with its AirDrop technology on OS X Lion via a Wi-Fi ad-hoc connection that allows users to share files with other Macs running OX Lion and beyond without the need of a USB drive or even a Wi-Fi connection, as the transfer happens peer-to-peer.
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