Since active speakers are mostly used with PCs and laptops, Audioengine also decided to enter the DAC market. They launched the D1 initially which was quite compact and portable. However, the Audioengine D3 is even more compact and is about the size of a large USB flash drive.
There have a been a few small sized DACs released, and Audioengine has priced this one at the budget end of the range at $189. AudioEngine claims that this DAC has the ability to power almost any headphone out there. Bold claims for such a small device when there are large headphone amplifiers having difficulty powering large headphones.