This is not necessarily correct.
A lot of people still regard iPhones and other high-end smartphones as being something of a luxury. They are a luxury when you compare them to what we need for survival (food, water, shelter), but there is something to be said about a small rectangular device that, once purchased, can provide nearly free:
1. entertainment
2. education (Wikipedia, etc.)
3. news
4. photography
5. social connection
6. documentation of events (note taking, video, etc.)
7. voice recording
8. calculator
9. more complex tools (graphing calculator, 12C, etc.)
10. flash light
11. access to e-commerce (save money on things you need)
12. e-readers (text books that might otherwise be cost-prohibitive)
The list goes on, but, for all of its negatives, the value of a high-quality smartphone like an iPhone can't be over-stated.
In fact, when you consider all the things it replaces, including entertainment, poor people almost cannot afford to not have a smartphone.
Whether the additional value of an iPhone or other high-end device (Galaxy, etc.), compared to a low-end smartphone, pays for the increase in cost, is definitely debatable.