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The new research revealed Wednesday was conducted by iSuppli’s Teardown Analysis service. Andrew Rassweiler, teardown services manager and senior analyst for iSuppli said: “Due to design changes and component price declines, iSuppli estimates that Apple has reduced the Bill-Of-Materials (BOM) cost for the new $199 retail-priced 4GB nano to $72.24, less than the $89.97 that was estimated for a first-generation 2GB nano upon release."
New manufacturing savings can be attributed to a new system-on-chip (SOC) design that reduces the total amount of chips required by consolidating functionality to a single chip, iSuppli notes. The company also changed to use CapSense technology, replacing Synaptics's technology as the circuitry behind the iPod’s Click Wheel interface.