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Unless you’re already familiar with using a DAP I think it’ll probably end up becoming annoying having two players. Why not upgrade the phone’s storage (or subscribe to some streaming music service or other) and add an inline DAC like the Audioquest dragonfly or Cyrus Soundkey ?
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Yeah it's a conundrum, except for the fact that carrying around a DAC for my phone is so much worse than just having a music player. Having to pull out my little DAC dongle for 'serious' listening while I drink real ale at my seat in the pub. I'd feel dirty, like I'm carrying around a Fleshlight.
My phone has no external storage anyway, despite being a good phone (Xiaomi Mi 6). I could buy an LG Vxx phone, but I'd rather just not listen to music than dump a phone and spend money on another which is a bit louder. My last experience of streaming services was Tidal which entailed limited artists/albums and not being able to listen without wifi. Maybe that's changed, but I have a lot of the music I want on file anyway. The problem is that I can only listen in my bedroom. I have IEMs I like on that setup and 400 quid to burn on something more portable.
A DAP is the least annoying option to me, but whether it worth spending a few hundred quid on I'm not sure.
I'm thinking of either spending up to 150 on a cheaper DAP or used LG V20/30, or going up to 300 ish on an android player maybe Cowon D2 (non-android) or iBasso dx160 (andorid but no play store). I think that kind of money would be better spent elsewhere though.
For home/office/train use. I'll use bluetooth/phone streaming for walking/jogging.