What the holy hell are you talking about bud? Is this just completely flying over your head?
Words synonymous with "Luxury"...indulgence, nonessential, treat, extra, frill. Apple does not sell a product to fill a "need", they sell a product that fills a "want", an "indulgence", a nonessential piece of technology that, once again, could be replaced by a lower tier phone when it comes to basic functionality and demand, but is successful because it gives you something "extra", it gives you some smart phone "frill".
This isn't my definition...this is the standard definition of luxury my friend. I'm sorry that you still fail to see this, and it has become excessively boring to continue to try to get you to understand this basic, general definition.
Trust me...in my OWN definition of luxury, the iPhone barely even qualifies. I've spent more on mineral water in the last year than I have Apple products.