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Is it worth upgrading your Dac when you use the digital out on an Ipod ?

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Al110
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My present system is a Marantz M-CR603 and Dali Lektor 1's and my 160gb Ipod classic is connected via an Onkyo ND-S1 dock and QED optical cable to the '603.

My question is would I hear a difference if I upgraded to an external Dac in the £300 to £500 region or is the ipod as a source the limiting factor making the Dac upgrade pointless,the reason I'm a bit uncertain about this is that I tried this upgrade before only with a Denon DR-M38 and a Dacmagic and I could barely tell any difference between the Denon's Dac and the Dacmagic.

The Dacmagic did sound better but it wasn't worth the extra money imo.

So any opinions on this would be welcome,also any Dac recommendations.

Thanks,

Overdose
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RE: Is it worth upgrading your Dac ?

The benefits of an external DAC in terms of 'better' sound are perhaps not so obvious or large as is made out. Differences obviously exist, but they are not the often descibed 'night and day' type. Your own personal circumstances would dictate wether or not the extra expense of an external DAC is worth it.

External DACs do have other benefits though, such as more connectivity for additional sources and for different speaker types.

The digital signal out from an iPod is just like any other and as such is no better or worse in terms of providing a digital source signal for the DAC in your system.

In my opinion, if you were looking at spending £300-500 on your system, I would consider a speaker upgrade, or another often overlooked 'upgrade', is the addition of acoustic panels. They are not expensive and can be made by your good self, if you are not too shabby on the DIY front.

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Al110
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Thanks for that, but

Thanks for that, but circumstances mean I can't change any other part of my system for the time being but I can add a Dac easily,I just wanted a bit of confirmation that it was a worth while upgrade.