Company cell phone instead of raise?

The company I work for has not given out raises in the last year and a half. I received m last raise at that time. Today, while at work, my boss offered me a company iPhone with a company number for my own personal use in lieu of a raise. I told her that I would sleep on it. The more I think about it, the more I feel they are just throwing me a bone so I don't complain about my salary. I've saved the company thousands of dollars last year, I go above and beyond my responsibilities on a regular basis and I do a good job. I'm not sure how to tell her politely, that while I appreciate the offer, I can't justify a personal cell phone and a company cell phone and I would prefer a financial raise. Is there a way to bring that up, even though she said that she doesn't think much money will be coming our way? Or should I take the phone and shut up?