A big loss economically, maybe, but in terms of energy/carbon losses, to say it's more efficient to just crush the thing and make a new one seems false. You've pushed from number 1 on the Reuse->Reduce->Recycle->Recover->Landfill to steps 3 and 4, and then created a new iPhone in its place.
Throughout its life, a single iPhone 11 Pro Max is 86 kg CO2e [1]. The XS Max that existed and is crushed to "preserve brand value" is 77 kg CO2e [2] in footprint. Just in manufacturing costs alone, you are creating more CO2e creating the new one than the XS Max did, and taking the XS Max out-of-life early. We are not taking into account you now get to recycle the XS Max or just dump it in landfill.
Destruction of an existing item for "brand value" is not the correct environmental answer.
[1] https://www.apple.com/environment/pdf/products/iphone/iPhone...
[2] https://www.apple.com/environment/pdf/products/iphone/iPhone...