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Apple has talked about hi end audio and originally claimed that the large HomePod was an audiophile quality speaker but they really don’t support what is now called HiFi systems. ALAC (Apple’s high end format) is 16 bit sound, FLAC is 24 bit. Can you hear the difference? I think some people can, but anyone who thinks MP3 is a good quality source either doesn’t care or hasn’t heard a good source coupled with decent speakers. Airplay standard is something less than ALAC, and anyones Bluetooth-Apple or anyone or anybody else's- is 12 bit audio at best, although it is due for an upgrade soon.

I don’t think that the original HomePod needed component upgrades to be a 24 bit compatible speaker. I don’t know what Apple would need to do to be able to stream music at that level hardware wise to their phones or ATV but I do think that they blew an opportunity a few years ago when they released the HomePod without even true stero, let alone 5.1 or 5.2 surround sound quality but that is what I had hoped that they would do back then and I still wish they would do it now. Put out a real audiophile capable system.
 
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