Your quote reminded me of something Warren Buffet said some time ago.
Berkshire Hathaway CEO Warren Buffett believes Apple offers a highly desirable product in the iPhone, one that consumers would give up a second car to keep.
appleinsider.com
I think we are past the point of the iPhone being some optional, luxury good and well into the territory of it being an integral part of one's livelihood. Sure, an argument can be made that one could save some money by opting for a cheaper android phone that does the same basic stuff, but when you think about it, what's $1000 over 3-4 years? That $25 a month is not going to make or break the bank, and an iPhone actually makes financial sense when you also take into account the longer software support, iMessage and better build quality.