Going from a laptop’s headphone out is the same thing as going from the phone’s headphone output.
A DAC is a “digital to analog converter.” This means that the source is digital and it is converted to analog, to plug into a receiver’s analog input (e.g. the red/white RCA jacks) or headphones.
The output from a headphone jack is analog to start with, so a DAC is useless. You’d need an ADC, “analog to digital converter.” Which is pointless, because the file started as digital on the phone or laptop, was internaly converted to analog for the headphone jack, and now you want to re-convert it back to digital so it can be converted to analog yet again?
What you need is a USB DAC converter than can plug into your phone’s USB port. I know such things exist for computers, but I don’t know if they will work for phones. Perhaps someone else can tell us.
However, it won’t necessarily remove the “suckiness” of MP3s. Many of them are low bitrate or weren’t converted with a good MP3 encoder to begin with. No DAC is going to make them sound like a WAV or lossless file.
Regards,
Wayne A. Pflughaupt