Seeking Knowledge and Advice on Amps and DAC's

[Heals]

Hi guys (and gals), long time lurker, first time poster. I'm fairly new to the scene, complete noob, and was looking for advice from the community. I'll start by listing what I currently own, and then get into my questions.
 
Source: ZTE Axon 7
Headphones: DT 770 Pro 80 Ohm
Audio Files/Sources: 24 Bit Flac Files(44.1,48,and 96khz), Spotify.
 
1) If my Axon 7 has the AKM 4490 chip, would I benefit at all from an external DAC? For example, The Schiit Modi 2 uses the same chip, but the implementation is probably better...so...I guess I don't know how that would or would not effect the sound if at all.
 
2) My Axon pushes my DT 770's to appropriate levels, with one caveat. The steps between volume levels are steep to the point where one position is listenable, but the next click causes the music to fall apart or distort. Is this a limitation of the Axon amplifier? And would I benefit from an external amplifier like the Schiit Magni 2 or even the portable Fiio A5? 
 
 
In a nutshell, like everyone else I'm trying to get the best out of what I have. I just don't have the required experience or knowledge just yet. I was initially looking at amp/dac combos, but the AKM chip is pretty well respected so maybe I just need an amp to iron out the volume/distortion issue? 
 
Thanks in advance for all your help!

 

[Heals]

This is the first time I have ever bumped my own thread...I feel dirty...

 

[obobskivich]

The chip itself is not the only question when it comes to a DAC - that doesn't mean the ZTE is going to be "bad" or "unworthy" because it isn't advertised as an audiophile hi-fi device, but at the same time a more robustly build stand-alone DAC *MAY* have some subtly appreciable improvement on sound. That having been said, I wouldn't go out of my way to add a DAC just for the sake of adding a DAC here. It does sound like an amplifier may be a good choice though, to give you more control over the volume output (I have another idea for this, keep reading) - that amplifier may include a DAC because the "DAC+amp" genre is so white hot these days, and I wouldn't shy away from that either - the whole "I won't buy features I don't need" is unfortunately often manipulated by advertisers and manufacturers to upsell products that are high in price and low on features.

Another idea: if the ZTE is able to produce sufficient loudness and whatnot for your cans, but the volume control itself is not as granular as you'd like, you could just add a passive volume controller between it and the headphones. You'd have to run the ZTE's volume setting up higher than you normally listen, but then you could adjust it down with the passive volume control. This would be a pretty inexpensive (and compact) option, which personally I'd give a shot (we're talking like $10-20 tops here) before buying a larger and more elaborate piece of gear, especially if this is a mobile setup (as it sounds like it is).

Example of such a device:
https://www.amazon.com/Koss-155954-VC20-Volume-Control/dp/B00001P4XH/

 

[Heals]

Although a bit delayed, I just wanted to say thank you for the response. Very informative, and you helped me understand a bit of the psychological game between manufacturer and consumer. I had no idea a passive volume controller was a thing, definitely something I will keep in my back pocket (figuratively) for the future. 
 
Because I'm a Noob...I finally opened my eyes and saw that I have a NAD D'3020 powering my tower speakers...which also has a built in headphone out/amp/dac. lol Totally overlooked this, and while its not the most powerful (150mw@32) , it solved my volume issue. Now I'm off to try and find other ways to spend money!
 
Thanks Again