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Otherwise a 200 Dollar phone is likely more than enough. Actually, since I buy laptops used, my phone nearly costs three times as much as my refurbished dell XPS 14"
No you definitely don't need. You want!
Now then.. how come you/I/anyone ends up wanting a $1000 phone? Marketing? Vanity? Riches beyng sense? Need for portable computing power? Need to constantly have with you 5000 photos, 5000 songs, 50 movies?
Really for me it's just a nice to have though. A few years ago I got by with a Lumia 520, I'm sure I could live with a $100 Android phone if the cost were an issue. But I use my phone a lot so it's worth it for me.
I don't even spend $1k on my cars. While I'd love to have a new, secure, iPhone I can't justify that level of expense. Regardless, what other people do with their money isn't your problem.
I didn't choose the above attitude consciously per se, but thinking about it in retrospect, I'm comfortable with it. I have a lot of product-category-choices that make little sense to someone unwilling to spend $1000 on a phone: wool underwear, an Onyx Boox Max 2 (wonderful device), an Urbit star. I don't spend money pragmatically.
"Need" is too of a strong word. People doesn't need a $80,000 car that can go from 0-60 miles per hour in 1.9 seconds in a country whose max highway speed is around 75mph but they buy it anyway when they can afford it.
Consequently there's lots of semi-limited access state highways that have the occasional stop light and 45-55mph speed limits giving you plenty of opportunities to enjoy fast 0-60 acceleration. Also, the ability to just move left and almost instantly be going 30+mph faster is great when the person in front of you insists on merging at 35mph (you can go around them WITHOUT cutting someone else off). Or if you are that 35mph merger you can take your sweet ass time finding the perfect spot and then just step on it and merge without the guy you merged in front of (who's probably going 70+mph) having to tap their brakes.
Yes, it's a luxury but the capability is more useful day to day than most people think.
Especially for friends who rely on photos for their jobs / side projects, it is a huge difference comparing pictures from a Google Pixel / iPhone X and phone models from a few years ago.