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What makes a DAC so expensive?

You can buy a Cambridge Audio AXA25 25 Watt 2-Channel Integrated Stereo Amplifier | 3.5mm Input, USB Input for $225, and most DACs seem more costly. 

I'm wondering what it is that makes a Bifrost 2 almost as expensive as an Aegir and 3x's as expensive as the Cambridge product, above. I would have thought an Aegir would out-expense a Bifrost by a factor of two or three. What are the parts that make the difference? 

I'm wondering if the isolated DAC concept is one that comes with a "luxury" tax affixed. Can anyone explain what I'm getting in a Bifrost 2, or other similar product that justifies the expense...?

Thank you.
listening99
djones51
4,947 posts
 
There are basically two types of DACs those that adhere to the sampling theorem and properly reconstruct the waveform. Which means the waveform going out of the DAC has been reconstructed to match the waveform that went into the ADC. The other type of DAC doesn't adhere to this basic principle and goes off creating a sound either through filters that maneuver the waveform or just out right changing it on purpose. Now one may prefer a DAC that has a sound signature but it is not a transparent DAC that is reproducing the file accurately.
speedbump6
760 posts
 
I see some good points on this thread. People actually understanding manufacturing costs, engineering, etc, and seem to relaize the last extra costs exponentially more. Then I see djones as usual poo pooing anything that costs because he can’t afford it. I can’t afford a dcs stack at new cost, and also keep everything else I have. I could,  it that stack wouldn’t be much use without amps, speakers, etc etc, lol. Dosnt mean I wouldn’t like to have one if I could. 
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jjss49
6,612 posts
 
@speedbump6 

couldn't agree w you more... cheers
listening99 OP
172 posts
 
As I don’t have access to Djones financial records, I personally would like to focus on his reasoning, which is sensible as presented. If a $200 DAC measures .0006 THD+N, are we looking at an output value and how does power supply and/or OP amp compression figure into this measurement?
djones51
4,947 posts
 
I have no desire for a dCS stack as it wouldn't provide anything audible that I don't already have. 
Take a little Topping E30 DAC it has a SINAD of -113 and the THD +N is about .0024% which is about -95dB. 
The Linn Akurate DSM has a SINAD of -110 and a THD+N around .001% or about -100dB. 
Both of these DACs reconstruction filters roll off the high level frequency above 22Khz as required by digital audio theory. 
Perhaps some people could tell one from the other in a blind test I doubt I could.
One DAC is $139 the other $10,500 in a sighted test which one will win consistently?  
Power supply noise and OP amp compression isn't that important as long as the output measurements are extremely good as long as the DAC can cope, if it can't then you don't have a well engineered DAC. 
Which of the 2 aforementioned DACs have power supply issues and reconstruction filter problems?
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