That as the technology plateaus, and the upgrade cycle becomes longer, there's much more reason to spend more on a handset because you're not going to feel like replacing it a year later?
Spending a bit more doesn't seem like an issue for something that will last 4/5 years.
Your friend may say spending more than an R3500 is an unnecessary luxury on a cellphone. I say that the cellphone is the single most important piece of technology I own and so isn't the area I want to be stingy on.
Apple isn't necessarily the best choice even with that in mind, but that's a separate argument.