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Arcturus said:
What market are they targeting with that price point?!

 

If you think that's expensive, see this Astell & Kern at $2400

http://www.head-fi.org/products/astell-kern-ak240

There's indeed a niche market for expensive music players. They may only sell a few thousand of these but it's a high margin product. Audiophiles buy headphones that can cost up the $5000, equally priced amps etc.