There is so much time, effort, and physical waste that is generated by slightly redesigning phones every year purely for the sake of making sales (as opposed to meaningful improvement upon the existing design or introduction of a new hardware feature). Think not only of people upgrading for the sake of it, but all of the cases, screen protectors, and other assorted accessories cast in plastic for previous models that are garbage now.
It would be nice if we could just space these things out to 5 years or so now, because that's probably how long it takes for anything to change enough to justify a new model.
Among the people I know, there's more people living paycheck to paycheck and getting annual phone upgrades than people with FU money doing upgrades. That said, the percentage of FU money upgraders is higher than the percentage of paycheck-to-paycheck upgraders.
Google/Samsung/Apple/etc may be making more total money from the not-well-off than the well-off, at least thinking about people I know.