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
Dac's like anything else are built to a price point. They can be as simple as the DAC in your phone. But no one will argue that their phone DAC is anywhere near as good sounding as a discrete dedicated DAC. The Bifrost2 uses Schiit's version of a R2R ladder configuration that is more costly to implement well compared to a cheaper design. It has it's own power supply etc. The BF2 should be miles ahead of what the Cambridge can do. Makes sense, you are paying for the R&D and tech that Cambridge decided not to spend.
These types of questions always puzzle me. The capitalism quote is right on. Many have found utter pleasure listening to a myriad of products that punch way above their price points. For some it may be “snob appeal”, for others they may actually hear something others do not. When it comes to certain hobbies like watches, cars, art, wine etc. seldom should price be an influencing factor. There is greatness at every level you only need to decide at what level you want to participate. In reading reviews of any product you can always find those who have in their mind found “better” (subjective), out-performing the Reference Class for much less.
There's an excellent video on YouTube that was JUST released covering this topic. Go to YouTube and look up Hans Beekhuyzen and watch his latest video "What defines the quality of a DAC."
Funny, I was looking at a system I use. I use a 5 dollar, flee market Galaxy SIII phone for the source and the DAC.

I go in and listen to, the Mac C2500 or a Krell I use in the basement.

Is there a difference? Man oh man. HELL NO!!, 


Just kidding, big time difference. The Krell skinned the pants off the Mac
until I did some work. Tube roll or two, and an op Amp swap. Krell is very clinical. Mac is..... Mac...

Just so you know none of them come close to my C20 in the analog world. Good yes, great, NO! That C20 is killer..Samra Touch...

Regards
As I've said before, the proliferation of costly high-end DACs is a clever marketing ploy to snare the gullible and unwary who conflate performance with price!