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The smartphone market has matured, so there is less of a difference between each generation. Earlier on there was a massive difference in performance:
The OG Galaxy S had 512MB of RAM, 8GB storage, and a single Arm A8 core at 1GHz, and the SII had 1GB of RAM, 16GB/32GB storage, and a dual core A9 at 1.2GHz. This is a single generation with double the RAM and more than double CPU power, and nearly 6x the GPU power (theoretically), and 2-4 times the storage.
Then the SIII came out with a quad core SoC 1.4GHz, a much larger screen with higher resolution (jumping from 480p to 720p), significantly bigger battery, and up to 64GB of storage.
The S4 doubled the RAM to 2GB, faster storage, significantly faster and more efficient SoC, a larger, 1080p display paired with a much more powerful GPU, and a significantly larger battery as well.
Back then, if you had the money, there was a considerable difference between each generation and there was a reason to upgrade, many not every year, but if you could afford it, upgrading every other year made sense.
After that, changes were much more calm. Sure, some phone makers made exciting and innovative stuff, but the hardware didn't have a massive difference from one generation to another, and also prices were rising.
Nowadays, phones are far less exciting, but flagship phones are ludicrously expensive, and yet they sell incredibly well. While phones are being improved from one generation to the next, they feel like small steps rather than a giant leap. Our demand for power hasn't gone up quite as fast as our phones themselves. People will keep buying phones less frequently, just like we do for laptops.