What a ludicrous generalization. Not only do I personally know Indians who own iPhones and Macbooks for exactly the same reason I do - we like them better - but you could make the same specious argument about anything, anywhere.
And really, does merely owning some sort of iPhone really confer status anywhere anymore, if it ever did? I haven't noticed anyone besides high-schoolers caring at all about whatever brand of phone someone happens to prefer for a decade. Time for that old trope to lay down and die.
No, but owning a newer one impresses those easily impressed. It says to others that you can afford it. The Internet, at the least, is rife with memes about Android users being "cheap". Gifts of iPhones are often also highly valued over Androids as gifts.
The same sort of person impressed by expensive handbags and highstreet designer clothing in everyday situations is the same sort of person impressed by iPhones and sport cars in cities. I don't mean to pass any judgement when I say that, but I find the notion that people simply don't think "but I'll look poor if I use that" (perhaps unjustifiably, perhaps unconsciously) to be simply absurd. The vast quantity and desire for such show off products would show you wrong.
The truth is that few people (and I know that this might sound unbelievable to a HN reader) simply don't care very much about a phone's functionality beyond availability of apps (which is almost at parity level between Android and iPhone), performance (the minimum accepted being met by almost all popular phones) and integration with other tech (which seems to matter less now that people have moved from using iTunes to Spotify, YouTube and Netflix).
The look and high price are absolutely reasons why someone might prefer to buy and iPhone. It may not confer status to you but it seems to for a lot of others.
Or are you suggesting you speak for 1.3 billion people.