How do you sell more apps if people buy fewer phones?

Maybe you don't know this but you can install multiple apps on one phone. And there are a ton of services built into those apps. They don't all build their own payment processor, or security packages, or a ton of other backend things you never see. You just don't see all the b2b services that you use every day.

Then there's all the physical services. People always need haircuts and plumbers. Look at the actual numbers and you'll see that layoffs are quite low now:

https://www.bls.gov/news.release/jolts.t05.htm

Honestly, your thinking appears to be influenced by your personal feelings and not the actual facts. There's always problems in the world. Today's problems seem bigger but that's just recency bias. In the 90s there was literal war and genocide in Europe and around the world. The economy was fine.