Meh, depends on your scope. From a barebones point of view, anything but simple food, water and a place to stay is 'luxury'.
Smartphones are incredibly useful to have though. Direct access to other people, the internet, encyclopedia, gadgets (calculators etc), travel. It's becoming near invaluable in todays' age. In the very black and white situation that you make your residents choose between a smartphone or health insurance, you kind of make them worse off (a trademark owned by quite some republicans I might add).
But yeah, they don't need a €1000 smartphone for that tbh.