alwaysbeblue1 said:
The component cost of amplifiers, CD players and so on is relatively low, and with high end products you are paying for a fancy case and the limited production run rather than better innards. There is no reason why a competently designed budget amp should be any different to a fancy high end product at resonable volume levels. Power does cost money though, and big transformers and big reservoir caps are expensive, so if you want high power you will need to pay up for it.
Speakers are different. While the low production run / high cost argument still applies, there does seem to be a correlation between cost of materials / quality of build / quality of sound /overall price.
So, I would be pretty confident that I would be able to tell cheap vs expensive speakers apart in a blind test, but I doubt I could tell amplifiers or CD players apart.
Ball-cocks.
All electronic components like resistors, capacitors, diodes and even transistors come in a variety of quality (accuracy, consistency) levels.
Standard resiators, for example, come in three ranges: gold-band +/-5%, silver-band +/-10% and no-band +/-20℅. It follows that the higher the quality of the components, the higher their unit costs (probably exponentially). Using tighter tolerance components, however, would mean more predictable and consistent circuit performance. I would wager the higher end hi-fi products therefore use higher cost components, and that some even go as far as individually testing and matching them, all of which costs a lot lot more than the 20p they pay for a resistor.
That's just one reason high end hi-fi costs more and performs better.