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There are several situations in which you may feel the need for a DAC.
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As a result, buying a high-quality external DAC is advisable to improve audio fidelity and output quality.
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But these DACs have wildly variable output quality. All modern digital devices that deal with any audio playback, be it a laptop, cell phone, TV, or music player, have a built-in DAC inside them to convert digital audio files to their analog format. This job is handled by a device called the digital analog converter or DAC. When you play these files on your PC or iPod, they have to be first converted from digital to analog format to enable the hardware (your speakers or earphones) to play them as music. These days, almost all music and audio files are stored in digital formats like MP3 and FLAC.
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