Exactly!!! Different types of drivers will respond differently to extra juice, but like you just discovered - PM-3 planar magnetic drivers bloom with extra power. As I mentioned in my review, you can drive it "loud" to hear the sound even from a smartphone, but it will sound blah. You can even hear a difference with HA-2 (by far my favorite pair up) when you switch from Lo to High gain while adjusting volume to the same loudness level. The performance of the driver (from detail retrieval to dynamics and even soundstage) will improve with extra power. C5 pair up is fantastic, especially when it comes to soundstage expansion, the strongest value added of that portable amp.
I don't think power output has anything to do with sound unless the amp is severely lacking in power to drive the headphones to sufficient levels. Rather, the design of the amplifier and what the signal goes through is what makes things sound different. I don't think anyone will say the FiiO E12 (880 mW, 5.3 Vrms, 165.8 mA max at 32 Ω) sounds better than the Objective 2 (613 mW, 4.49 Vrms, 136.2 max at 33 Ω). I certainly prefer the O2 to the E12 with the PM-3, and I still much prefer the HA-2 (220 mW, 2.65 Vrms, 82.9 mA at 32 Ω) or even JDS Labs C5 (31.8 mW, 1.01 Vrms, 31.5 mA max at 32 Ω) over the E12.
Most people would agree that a smartphone's headphone output isn't very optimised.
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