2nd generation iPod nanos cost $72.24 for the 4GB version. Previously, it cost $89.97 for the 1st generation 2GB version. Sure itâ€™s not an apples-to-apples comparison (haha), but costs are definitely down. iSuppli, a market research company, did a teardown and figured out the costs. The lower cost of manufacturing is the reason why Apple was able to bring down the price. Also, PortalPlayer is out and Samsung is in for the chip that makes everything work inside that cute little box. Everyone knows already: the display is brighter now thanks to Nichiaâ€™s LED chips.