This is my humble theory : In the past if you wanted to make a great DAC, you needed capable engineering teams, spending time (and money) designing and optimizing the circuitry, selecting the right components, binning and matching individually if required etc. to be able to develop a great product. All of these required a lot money of course, and required it upfront. So you'd be investing piles of money on a product which was not sure to deliver any results, probably making you ask for a higher return on your investment. If you had the good product you were aiming for, and given the sales volumes are also low, you will need to operate at very high margins to recover and get return on your R&D cost. And even the R&D work you did last year did not yield any significant results, you still needed to be able to sell the new products, so you would start using a bit of creative licence when introducing the new product. "It uses the latest technology linear transistors" you'd say hoping that it sounded like worth spending the extra to the buyer. A niche market such as this with such high margins always attracts sharks of course, trying to make some good money by bullshitting people who were ready pay top dollar for a new product that has some vague claim for improvement over last year's model, like the other genuine engineering companies are doing. Buyer can not tell the difference anyway, so why not! Outside of snake oil tradering sharks, it is mostly the same marketing that is employed by every industry in my opinion. You have a new dac, you write it sounds great on it and quote a remotely relevant sounding technical spec to sound like you really mean what you say - looks like standard business practice to me. What is different now I think is that all that expensive R&D work is mostly done by the fabless semiconductor manufacturers who has volume to recover the costs. so for Topping and SMSL the only major cost is manufacturing, lack of high and risky R&D makes the products much cheaper, expands the market, making the economies of scale work evern better. I think we should expect nothing but decreasing prices per performance in the coming years, and sadly, but also naturally, majority of the old school engineering houses to go out of business. I just want to get a Violectric before all that happens