Yes, you're logged, yes, you have a free account, yes you can disable a good deal of it in your account settings. It's not just on your phone either.
Ubuntu has OS analytics
Windows 10 has very detailed OS analytics
Android has a fair bit for the OS
You've confused a couple things. Your subject says phone but the body of your text just talks about using Google services and websites.
It's not just Google that knows this stuff, if they won't be the ones that knows it someone else will. OS level analytics are a good thing. Games have a fair bit of data that goes to the devs on phones and PCs. Free online accounts it should just be a given that stuff is happening with your data.
Also I would love a smartphone that doesn't come with many preinstalled apps I don't need.
They're paid to deliver ads to specific user groups, which are paid for in advanced by said companies that are advertised.