For some it is a status symbol. Ask any teenager how make/model of the smartphone designates their social status at school... It is similar with other items. You can buy (second hand) jeans for $10 and you can buy designer jeans for $1000. Both are suitable to wear in most situations. Some people have no choice. Some don't mind spending (wasting?) $1000 on the high-end version. The features are not always the reason people buy things and this nowadays includes smartphones.