It gets very technical, as highlighted in discussions like this one:
There was a discussion developing today on another thread about what is an acceptable (i.e. inaudible) level of nonlinear distortion from an electronic component. While we have a good sense of what kinds of claim are plainly ridiculous, the discussion reinforced for me just how unclear the...
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But extremely long story rendered extremely short: once an upstream component produces sound quality sufficiently transparent, downstream infidelity will mask or cover up any further improvements in sound quality from the upstream components. If you look, for example, at the typical amount of distortion produced by speakers, even in an anechoic context, it is many orders of magnitude greater than the distortion from these amplifiers and even more the upstream DACs. In somewhat layman’s terms, “your speakers aren’t going to produce the difference between a SINAD 88 amp and a SINAD 120 amp, so your speakers won’t have any difference to hear.” And again, this is in an anechoic context. What you hear from the main listening position is never purely the sound of your speakers, but rather how the sound produced by them is after being shaped with interaction with your room, furnishings, acoustic treatments, speaker placement/boundary interactions, etc. By the time that sound signal has passed through your speakers and all throughout the room to your ear, it is essentially impossible to hear the difference between (neutral response) amplifiers about a certain threshold of performance, and chances are, that threshold is below a SINAD of 88 (depending on the speakers, the room, etc.). Use of room correction will further mask differences/lower the threshold for audible differences in amplifier performance.
If we were talking about headphone amps, I would venture to say 88 SINAD is not good enough because they are generally not subject to masking effects of room interaction (extremely heavy masking effect—some people even believe you, “hear your room, not your speakers,” though I beg to differ to an extent) or, obviously, to room correction.