Phone Sounds Better Than My HiBy R1 – Is This Normal?

I bought a HiBy R1 because I like the idea of a small, dedicated FLAC player. I am enjoying physical media again (also bought a Fiio DM15 recently) and I genuinely want to like the R1 more! It is a great looking little deveice.

 However, my phone sort of sounds better to me.

 Comparisons:

Galaxy Buds 3 Pro (Bluetooth)

• HiBy R1 → Bluetooth → Buds (FLAC)

• Phone → Spotify → Buds

 Phone sounds smoother with fuller bass. R1 sounds slightly brighter / harsher.

 KZ Castor IEMs (Wired)

• HiBy R1 → Castor (FLAC)

• Phone → Cheap USB-C DAC → Castor

 Differences are smaller than expected. Phone + cheap DAC is surprisingly good.

No aggressive EQ or sound effects in play. Volume matched by ear.

Is it normal for a modern phone to sound better than a budget DAP like the R1, especially with Bluetooth earbuds and entry-level IEMs?

If I move to better wired IEMs (considering Letshuoer S12 or FiiO FH3), should I expect the R1 to separate itself more clearly? - this is the crux of my question I suppose....

Interested in real-world experiences rather than spec-based answers.