The real question, IMO, is why the need to release a new model every year? I think a lot of the churn of both hardware and software had nothing to do with technological progress, and everything to do with generating sales.
If you consider all users though, they most certainly do not buy/upgrade at the same time. So let's say a new generation is released every three years, for a given user when buy-time comes they'd be buying a brand new phone that is 1.5 years old tech on average, 2.9 worst case. Releasing a new phone each year means there is the opportunity to buy the up-to-date technology (whether it's a flagship or an economic version) at any particular point in time.
Opportunity does not mean necessity. By and large once people buy a phone and are happy with it they don't change it til it's dead or slow. Most I've seen keep it even way beyond the major version support threshold, or even security update threshold (which can happen faster than expected when people buy refurbs or older models, which they do). They're appliances. There are new models of cars or TVs or washing machines every year, yet virtually nobody changes those every year. One just buys the best one within their budget x identified use case at a given point in time.
In my experience the persona that buys a new phone every year used to exist in the early smartphone days, but today is by and large an outlier figure.
Not that mobile carriers like that, instead they try to keep the churn alive against the tide, because they want customers locked in so they have you buy carrier-locked phones at a rebate under a 1y contract and dearly want you to renew at the end, which means enticing you to get a new, carrier-locked phone.
The only ones I see changing phones regularly are the ones buying phones as consumables instead of appliances - less "washing machine", more "toilet paper", the kind of phone that is cheap and underpowered, borderlining on unusable (or outright so, which I consider to be defective by design) e-waste right out of the assembly line. They don't care about the device, so they don't pay attention, so they break it every rand(0..6) mo, and then the cost to repair is barely lower than the price new plus "it was so slow anyway", so they buy a new cheap one and the circle starts again; which doesn't quite work out financially of course, they'd be better off buying a good phone and paying attention to it (which they would simply because it's not cheap). But back to the point, this kind of persona doesn't care at all about the device "newness".