Apple Unveils a New IPod and a Phone Music Player - New York Times: "He [Jobs] focused on the shift away from the small disk-drive storage device used in the iPod Mini to the solid-state flash memory at the heart of the nano. He said the custom chips and the miniaturized circuit board used in the nano had also been potential stumbling blocks.
'Entire factories were created to make this device,' he said. 'Overnight we have become the largest consumer of flash memory in the world.' The flash memory enables the device to be smaller and more durable. "