Gee, some of the replies to my post sounded like they thought I was trying to start an argument. I was simply asking why people feel the compulsion to purchase a new phone every year. I purchased my MacBook three years ago, and it still does everything I want it to do, so I have no plans to replace it for quite some time. I will do the same thing with the phone. To me, that works and makes sense. If anyone else wants to purchase a new phone every single year, that is fine by me. I am not paying for it. I was simply asking why.
When you use words like "compulsion", people are going to be defensive. You gave an example of why what you spent was right for you, effectively implying that these other people are somehow wrong. You may not feel you did that, but the fact that people are getting defensive say enough, IMO.
People buy what they want to buy. I dare say a lot of people even get into debt with their phones. That's the saddest thing of all; some folks just buy into consumerism at all costs.
Why do I buy a phone every year? I sell my previous model shortly before it launches (Just sold my 64GB for $600 on CL), so it's usually only an extra $250 to upgrade. That turns out to be about $20 a month over the year; that's fewer than four coffees at some places a month, just as perspective.
It was mentioned that the lack for a $500 car payment is helpful; and it is. If I were paying $500 a month for a car I would probably reconsider my phone purchases (and maybe some others).