Actually Gfcf424892, my statement was actually true. Most CD players compromise on the analog stage and power supply. this is why "audiophiles" typically have separates in the first place. Separate power supply responsibility and signal crosstalk, etc. I have only heard a very few CD players that have internal DACs that can compete with good quality external DACS using the design and construction standards I mentioned earlier. I'm sorry if you disagree, but it really is true. Note, I did write most, not all. In my opinion, most CD player's internal DACS really don't have quality analog output circuity. You really have to look at that circuitry the same as you would with a decent pre-amps analog circuitry and power supply. Now, I am not comparing apples to apples here, so forgive me. An inexpensive CD player's internal DAC vs an equally inexpensive external DAC and there really is no comparison needed, because they both will be well below the standard of a high quality CD player and high quality external DAC. But take most CD players and get an external DAC that is built like a tank, like say, Theta DS Pro Gen VA and compare. you will hear remarkable differences. The real question asked was Do I really need an (external) DAC? the answer is, it depends on what you are currently using and what level of sound reproduction quality you are looking for. If you want "as real as possible" within set price points, (high end) then yes, you do. Because most internal DACs don't cut it. Again, top of the line Wadia, Boulder, Mark Levinson, Audio Research, etc. CD Players, would compete very well with equally quality external DACS. But, most CD players, well, they just don't.
enjoy