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Advantage of External DACs - Page 3

post #31 of 32
Thread Starter 

Does it seem that external DAC / amp manufacturers are charging outrageous prices then given the price of the components?
 

Quote:
Originally Posted by yifu View Post

Yep, cheapo DAC chips sell for around 3 dollars in bulk, the very good ones are only 40ish in bulk so its not a significant part of the sound quality, considering the fact that many 200 dollars DACs and 800 dollars ones use the same chip.



 

post #32 of 32

 

Quote:
Originally Posted by jrmhng View Post

Does it seem that external DAC / amp manufacturers are charging outrageous prices then given the price of the components?
 



 


Like most things, the prices we pay are a combination of both component cost, but also design (i.e. how to put those components together and which ones to use), marketing, distribution/logistics, retail markups, etc.

 

It seems crazy that we actually are paying for the expense that the manufacturer incurrs to tell us about their own product, but it's true. If it was all by word-of-mouth or other free advertising and if we were buying direct from the manufacturer, the cost could probably be lower, but there's still design, etc.

 

As it is, companies like Fiio seem to be at nice balance point where their marketing and design costs are covered already by other product sales, etc. and they're not trying to hold high prices to look "prestige". The E10 sounds like it's going to be highly affordable and really well priced for what it offers.

 

Other brands are probably keeping high prices to position themselves as prestige/audiophile, etc.

 

 

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