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The phone market has been a lot like the PC market 20, 30 years ago.
Back then, you actually had an advantage by getting a new machine quite often, as the newer machine was so much better and faster than the model from the year before. It actually made a difference for 99% of the users: The text processing, calculating, or browsing programs ran way better and faster on the current model than on the one or two year older one.
Nowadays, any off-the-shelf PC fulfills the needs of 95% of the users. It runs Windows/Word/Excel (or whatever else they use) fast enough to not be an issue. The only people who still need the bleeding edge stuff are some high-end uses e.g. in engineering, and gamers.
Same with cell phones. Ten years ago, the annual new model actually provided a big leap of abilities and comfort. Nowadays, I'm replacing my 5+ year old model just because the battery is getting close to the end of it's usability.