look at the fiio e17 ($130 on amazon) which is a portable headphone amp/dac. quite an improvement over the stock phone and has the advantage of mobility.
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I don't know if you can get a decent enough DAC at 200 bucks much less one designed for iPhone 5.
Here are my recommendations
Wolfson DAC battery powered and designed with help from RedWineAudio.
Most docks that have digital output (like the Wadia iTransport, Onkyo S1 and the Cambridge Audio ID100) are designed for the older 30 pin dock connectors so you would need the Lightning to 30 pin adaptor to work. And these really benefit from an external DAC as well.
If you already have a DAC in your system, get either an AppleTV or Airport Express and play the music on the iPhone via Airplay, hooking the optical output from the AppleTV/Airport to the DAC's optical input.
You'll need a 20-pin to lighting adaptor for Pure i20. Then when you have more cash, you can take the digital out from the i20 and put it into a better DAC.
Anyone know about a reasonable price solution to take digital out of the iphone portably and get it into a portable headphone DAC/Amp? 20-pin ipod or iphone 5...