Huawei manufactures exactly 1 million pieces of a particular mobile phone model in 2019 (eg P30 Pro) and sells exactly 900,000 of them by 2022, what happens to the remaining 100,000 pieces if not a single customer buys this phone? Are they then sold for 30 euro, they scrapped the manufacturer or what?
The cheaper then is called supply and demand
Samsung then simply rausgeballert cheap, Apple scrapped then. As far as I know
There are several possibilities how something "processed" is.
One possibility is that the non-selling devices are returned from the shops to the manufacturer. For example, a "recall" action to the dealer where the customer does not notice. Ann are the devices stored and, for example, sent to other countries or sold to cover the costs. Deficits can be written off to some extent internationally.
Another possibility is that an action will be officially announced and the device buys a dealer cheaply to make a bundle out of it, thus selling the devices to unsuspecting customers.
Another option is to send all equipment to a central warehouse, recycle it there and re-use the raw materials for other or the same products. Not so long ago, the Samsung did with some models from his house because of problems with batteries.