Why do we live in a situation where people think they need to buy a new phone yearly?!

They are conditioned by companies and also their piers to have the newest phone. Let’s keep in mind these companies spend thousands to study their clients, so they know how to manipulate them. A very good example (because it’s one of the most successful at conditioning their own users) is Apple, but there are many more like that, just not as successful. Apple users won’t admit it but the fact they watch Apple events like it’s something super important for them, only shows how very conditioned they are. In the end it’s not really very important, people are free to do what they enjoy and spend their money anywhere they like.