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

Showing 1 response by alwynlarryv

There is a concept in economics that says "price rations the supply."  This is usually  brought up in a discussion about crude oil or soybeans.  However, the principle will travel.  If you manufacture 100 DACs a month and can only sell 35 of them your probably priced to high.  But if 99 of them find a new home each month, your right where you should be.