Would you buy a $500 gift for a guy you've only dated for less than 6 months?

Dating a guy for about 5 months. He mentions that his birthday is coming up and he would like to get a new cell phone. The cell phone he wants is $500. Since first mentioning it, he's been dropping hints towards being excited about his gift and that he would be upset if he didn't get it because he really needs and wants it. He's also been going above and beyond lately (i.e. massages, unexpected phone calls and dates). I was expecting to get him something for his birthday because I love birthdays but I didn't expect to spend $500. If he was my BF I wouldn't even question spending as much but since we've never had a conversation about being exclusive I'm questioning if it would be a huge mistake. Also, I'm thinking of my B-Day coming up in February and how I would expect more than Flowers and a card from him on my B-Day...being that by that time we would've been dating for almost a year. Would I look crazy buying him what he wants and if I don't how do I let him know I'm not getting him a cell but I got him X instead?