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The iPod will not be able to drive many headphones. It does not drive my 250-ohm DT880s well at all. I have read that the DAC on the iPod is good, relatively speaking. So I imaging it is good with earphones. I find the C5D to be a good performer, but a tad lower in SQ compared to the O2/ODAC for instance.
Bob
Thanks for the quick reply!! I believe the phrasing of my question wasn't clear enough. I meant the iPod's line-out to a C5 compared to the C5D as a whole. I'm looking for another external amp for the iPod (right now it's stuck to a Fiio E11) as the Duet is rather large and the onboard amp of the iPod Video is recognized to be its bottleneck. If the C5D amp/DAC combo is better than the iPod/C5 combo, I'd get the C5D and just use an Apple CCK with my phone.
You can only use the DAC portion of the C5D with devices that support digital output. As of right now, only iDevices running iOS 7 can support digital output data. I use the iPod 5G/C5 or C5D as my main portable rig though. It sounds a bit more transparent than the stock iPod 5G, but if I'm in a pinch, the 5G does the job.