Why does everyone have an Iphone?

What's so good about it

No only the cool kids do.

its coz they have better apps than any other phone and they're easier to use and have itunes and you don't need an ipod if you have one

It looks cool, it's easy to use, and the OS is more efficient than Android, Blackberry OS, etc.
Also, Apple's marketing is out of this world.

Excellent marketing strategy by Apple and AT&T, and being in the right place at the right time. The good about it is that it's a computer that you can hold in one hand, and it makes phone calls, plus lots of other stuff.

Because it'a a phone and an ipod

Its the hot new thing! If Kim Kardashian started using and old Nokia phone, everybody would start buying them.

Everyone doesn't. I'm on my second BlackBerry and my next phone will probably be an Android.

Its definitely not because they needed it or they could afford to have this extra luxury. It is to show off, to have a fake purpose, to feel important and to feel like being part of something.
By all means iphone is a very best phone, though it is hardly ever priced correctly… In short it is always over priced accounting for a fact that as a phone it has also a value of perceived wealth and status toward other people and to some people in our modern culture.
There are alternatives such as samsung galaxy S2 and S3.
In the end it is just suppose to be a phone, people can use it to run away from realities of their dire status, but inevitable catches sooner or later.