With over 100 hours and dozens of actual listens to the Audioengine HD3 speakers I have made a caveat that I have decided to keep these speakers. Pros: Sound quality Quality of built-in amplifier and analog input resolution Quality of headphone output Form factor Fit and finish Suitable for sustained quality, unreasonably loud, and generally interference-free output Medium: Where the low-bass switch cuts the bass The rear panel of the powered speaker can get very hot, not true Does not affect the quality Bad: the built-in DAC in USB mode immediately turns off in the event of silence and cuts off the beginning of any sound sent to it, even when switching from track to track. Miscellaneous: The HD3 is one of the few audio devices I've ever used that actually breaks and needs a period of use before actual audio output is realized. This is the opposite of the typical scenario where the user gets used to the sound signature of the piece. The audio output is definitely the star of the show with these speakers, and I made sure Audioengine looked at the actual speakers, drivers, and drive section first. When connected to a Schiit Yggdrasil, Denon DA-300 USB, Pioneer XDP-100 or the analog output of a connected PC, they reproduce the remarkable level of detail and personality inherent in each source. They reproduce sound with an impressive resolution that deserves special attention. I have a couple of Class A amps and the HD3's amp section is pretty good. The HD3s are beautifully clad in walnut and well built. Personally, I love the design choices they've made regarding Bluetooth functionality. Loud or quiet, these speakers are amazing. Also, the headphone output is remarkable and one of the main reasons I decided to keep these speakers. The headphone output is excellent whether or not I'm using my Shure SE846 IEM 8 ohm headphones, although slightly below Audioengine's impedance specification for best results. They do it just as well with the SE535 or SRH-1840. Not perfect, but for most, even the pickiest, the HD3 is good enough to be the sole source of amplification for your headphones. You'll spend more money than the Fiio to completely trump the HD3 in this regard. As for output volume, I don't usually understand the few but constant complaints I read about their output performance. As desktop speakers, they have ample headroom before risking hearing damage in long playback scenarios. For a small room, say 20 x 16 x 8 feet, they will be overwhelming for room acoustics at full power. Larger speakers are available for larger rooms. Even with hearing protection, their desktop audio is clear and loud enough to be maximally uncomfortable, so even people with noticeable hearing loss should be happy with them as desktop speakers. I have some concerns about the durability of these speakers as the back of the amp gets hot with sudden movements. Very hot. You cannot pick up the speaker with the bottom covered and carry it for about 5 minutes after turning it off unless you are a welder or cook and can handle higher than normal temperatures. This is to be expected from a Class A/AB amp design, but some heat dissipation would really help in this regard. I suspect form factor is the limiting factor as other Audioengine products talk about cooling and I'm willing to bet the engineers did their homework here as they have elsewhere and they'll get through it with no problems create the warranty period. How long is the question. If I get three years of service and then they die quickly I'll be happy and will shortlist HD3 again in a heartbeat. The output quality is so good and based on my experience with Class A and A/B constructs I'm not worried. These speakers really are a child prodigy so I don't want to exaggerate my biggest flaw with the HD3, but it's obvious and almost made me return them. The HD3's built-in DAC seems to want to go to sleep as soon as no sound is sent to it, then takes half a second to a full second to come back online, only to be immediately disconnected again. If you let the output run for a measurable amount of time, they turn off and the first few moments of audio output are cut off as described. EVERY TIME. Skipping from track to track in VLC media player, Tidal web stream in Chrome, from the Tidal app, or when Windows generates a notification sound with no background music causes the sound to mute for the first half second. This is not done via Bluetooth or analog inputs... only via USB DAC. #*^Crossing the flank is unforgivable. If I didn't have a spare DAC, I'd put the HD3 back in the box and hurriedly send it back to/from/from disgust. One of the main reasons I bought this speaker was to be able to use the built in USB DAC and to make things as easy as possible on my desktop. It's just unacceptable functionality and a shame as the DAC is of fairly decent quality. I don't know why Audioengine even bothered to include it if they found it necessary to optimize power savings so aggressively other than ticking the feature box. It's an inkblot on an excellent report card. This problem occurs on two different computers. I even went so far as to disable driver installation on both computers and fiddle with the settings to no avail. Neither computer shows this behavior when running a Shi'it Yggdrasil or a Denon DA300, so I can 100% blame the HD3 for sure. Of much less concern is that the speaker layout can result in some...excessive presence at the lowest output frequencies, especially when the bass switch is set to "full mode". I don't want to call it boomy, but it's the first word that comes to mind, although it's not quite right. Much less, but definitely still present when the bass switch is turned back at fairly high output levels. It was a design decision, and not an easy one. I understand why Audioengine ended up where they ended up. Some, perhaps most, will never use these speakers with a subwoofer, and the HD3 as a standalone output solution is worth the price it's asking without a subwoofer. I feel that your expectations are unrealistic if they don't satisfy (it's more appropriate to impress given the physics...). The sound enthusiast in me wants them to set a low cutoff to... avoid over-presence at the loudest output levels in reduced mode, and let me dump it all on a pair of subwoofers to salvage the picture. This phrase could easily be pondered over in a few pages of prose, but suffice it to say I'm REALLY picky about mentioning it at all. In a nutshell. If you are determined to use them with the onboard USB DAC, I would advise you to look for other solutions or prepare for audio in other ways given the playback issue described above. The DAC itself is reliable enough for everyday desktop use, but its clipping on every track or note is simply unacceptable. Instinct wanted me to deduct three stars for that, but the rest of the HD3's performance is so good it pains me not to give the review a solid five stars. That's why I kept them. That's why the HD3 earned those 4 stars that start the review. So I'll consider them first next time I shop for something in the under 90 square inch (yes, 90) category or the shortest is the "best" basket. Given the price of the Audioengine HD3 and how pissed off the behavior of the DAC is, I take everything that has been written as glowing confirmation that these speakers will be your next set. Yggrdasil D/A Converter Denon DAC300 USB D/A Converter Pioneer XDP-100 Portable Music Player Galaxy S9+Shure SE846, SE535 and SRH1840 Headphones SVS SB-16 Ultra Subwoofer.
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