The biggest difference in most DACs is the input interfaces, particularly USB. The design of these varies all over the map as does the quality of the master oscillators, which equates to jitter.
For instance, I recently heard a W4S and drove it with Off-Ramp5 to S/PDIF and I2S inputs. The I2S input is worlds above the other inputs on this DAC, making it a world-class contender. Depending on how people use the DAC, they will report entirely different experiences:
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It is critical that the digital source driving the DAC have very low jitter in order to determine the real performance. A high-jitter source, such as the typical CD player will make many DACs sound a lot worse than they really are.
A low-jitter source will often make a $1000 DAC sound identical to a $8K DAC.
The next thing that sets DACs apart is the power subsystem and op-amps versus discrete transistors.
These things result in differences in harshness, smoothness and dynamics. Difficult to listen to most DACs with a lot of op-amps without fatigue IME. The smoothness of discrete stages is usually apparent.
These things if executed well can result in a nice analog sound. This is not an easy thing to accomplish however, so many DACs actually have compromised power systems that mask detail to achieve a softer sound. This is the wrong way to accomplish this IMO.
The final thing that makes DACs sound different is whether or not they use reclocking and upsampling to reduce jitter or not. Those that use ASRC upsampling will always suffer from some coloration from the upsampling IME. Those that have no reclocking or upsampling will sound worse with a high-jitter source driving them, but also better with a low-jitter source driving them. This is why I prefer DACs with no upsampling or reclocking in them. Gives you more control over the performance.
Steve N.
Empirical Audio