Originally Posted by Herandu
Nice of you to point out the price of the chips in 10K lot. What about the 100 and 1K price? No external DAC manufacturer in the world has yet made that many units of a single model. A typical external DAC is unlikely to have a production run of more than 1K. No manufacturer is going to sit on 50K worth of chips that would take them a year or more to use up. So pointing out the bulk price of any component does nothing to add to the decision whether to buy or not to buy a DAC.
It adds ALOT to the choice.
The prices are listed for comparison. The point is, to a company like Sony, which I'd be willing to bet, DOES produce its CD players in excess of 10,00 units (which is the only lot pricing I could find any info on while searching the net), even a 1 dollar variation on DAC price is a big deal in terms of the bottom line. For small manufacturers, its not, therefore they use chips that would feign to appear in consumer oriented gear which are leagues better for a nominal(in small quantities) increase in production price.
Therefore, the cost of DAC's in lots is a perfectly good thing to consider when your choice is between a mass produced consumer grade CDP and a custom or small run made external DAC for audiophile purposes.