Omg!!! My DD did the same thing!! SO FUNNY. It was an iPhone, too. This was a couple of years ago (she was eight). Same scenario - she bugged and bugged us for a phone, and when she realized we wouldn't changed our minds, she made her own, using paper, tape and a sharpie. No stylus for hers, but she added a pull-out keyboard.

What struck me as interesting was the fact that she didn't seem to care that it didn't work. She became so engaged in creating it that she appeared to lose interest in a real phone. After it was done she would pretend to use it, and was totally happy: she stopped asking us for a phone. It was interesting... it was almost like the underlying issue was more about self-sufficiency and self-advocacy (i.e. "I'll get what I want.") than an actual phone. Either that or she was still ticked off and didn't show it, LOL.