Design plays a key role, that is why you see apple selling a lot, while walkman struggles globally, regardless of its far better sound.
Ofcourse sound matters but it can matter only so much. I am judging the unit purely based on the other product in its price range. All the other two well known product have many features which justify their price tag. For example I can look at the Ibasso DX100 and get why it cost the price it does, but I cannot look at Altmann Tera and can convince myself that i am actually paying for parts not for the endless trial and error of development phase of the unit, the number of failed designs that the developer had to pay for in order to come up with its final design. The designer of the unit should be more transparant in its pricing.
I do not think that unit cost that much. The parts and assembly is just way over-exaggerated. I guess we would never know who is right.