Isn't that where all the money goes?
Millennials don't look at a iPhone as something that cost $800. They look at it as a monthly charge for the whole package and they purchase as nice a handset as their budget allows. By the time it is paid off, it's outdated and broken so they get a new one.
And you can bet a nice smart phone gives them far more value that napkins, golf, diamonds or Appleby's.
Also, for many Millennials, their smart phone is their only computing device. I'm learning they do everything from their phone. They don't have laptops and desktops at home. They don't do email. And don't bother leaving a voicemail on their phone, if they've even set up a mailbox to do so. They find it very annoying. They already know they missed your call. Their phone tells them as much.