Turn the iHome 180 degrees so the speaker grille is facing you. Carefully lift the bottom case away from the rest of the body and tilt it as shown.

Be careful and do not yank the bottom case. A white ribbon wire is the only thing that connects the bottom case to the rest of the device.

Using a pair of tweezers, detach the white ribbon cable. Make sure to pull on the ribbon, not on the head.

The lower case can now be completely removed from the device!