Everybody has different needs and interests. I'd rather have a powerful phone than to spend money on expensive clothing or other stuff. I find quite funny when people say they won't spend x money on a device that they use daily and then have huge houses, expensive cars.
You're right that everyone has different needs and interests, hell a single person has different needs in his different age. However, phones and house/cars aren't exactly comparable.
A house is a basic need, also big well made house is something that will stay for my family members even after I am gone. Cars, clothes these also attach sentimental value to them. You might hear people saying that they remember the clothes they wore on the day of their graduation, on the day they first met their significant ones, the car's they were driving while they got the news etc.. But you never hear someone say I had my iPhone 5 while I first met my significant other or something like that..
Phones are pretty disposable things. You will think thrice before selling the house you grew up in. But as soon as the new model comes out the old phones go for sale or in the bin.
Don't spend more money on something that won't last. I would rather buy a omega seamaster watch instead of an iPhone X anyday if I feel the need to spend that much amount of money. At least the watch will stay with me for 30-40 years easily with proper maintenance. 5 years is more than enough for a phone.