They use Cirrus DACs, too. My 5S has the best audio quality straight to most of my IEMs (especially the more sensitive ones; my LG Nexi had a more powerful amps, so they sounded a bit better with TF10s and dynamics once bestowed with the proper hacks) of any phone I've tried.
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It can be confusing since iTunes gives everything in 256kbps, AAC format. But the iPods and iPhones etc can also handle full resolution from cd rips and other sources, and in various coding formats, such as Apple Lossless, WAV, AIFF.