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 tk21

Whether it's a DAC or speakers, when comparing two good alternatives, I doubt most of a big price difference is in the parts.
Many high-end products are built more or less to order in small numbers, for affluent customers willing to pay a big premium even for relatively small differences in SQ. The company may not be over-charging for its product.  It really does cost more to make, deliver, and support it. But not (primarily) because they use vastly more expensive parts.

Recently I looked at Devore speakers. $8400 for the O/93, $12K for the O/96.   Plenty of decent, 2 way bass reflex boxes are available for far less. Devore uses veneered plywood baffles, not MDF.  Sure, veneered plywood is more expensive, but not THAT much more.