An inessential, desirable item that is expensive or difficult to obtain:
"luxuries like raspberry vinegar and state-of-the-art CD players"
"he considers bananas a luxury"
http://www.oxforddictionaries.com/us/definition/american_english/luxury
High-end would be a synonym. I think most people would consider an iPhone a high-end smartphone when viewing the smartphone market.
There are high end bluray players
There are high end speakers
There are high end cars
The iPhone is not high end when the retail price is the same is other competitive phones.
You're falling for the illusion that the iPhone costs more money because it doesn't!
Apple is making $$$ off iPhones not selling it at a loss so you can afford a "high end" phone!!!!
So NO the iPhone is neither high end nor luxury.
It's a HIGH QUALITY PRODUCT!!!!! Ding ding ding!!!!!!!!!!! We have a frrakin winner