That's because it doesn't, your brain does

Speakers do the simplest thing possible and literally just vibrate. A recording being played literally just recreates a recorded vibration. It's a tiny choreography that your ears are incredibly sensitive for.

All the fancy stuff happens in our brains, after our ears has split up the sound around us into different ranges of frequencies (you can think of the hairs in the inner ears as tuning forks). We learn to recognize which frequencies goes together, and then we learn how the frequencies from multiple sources can overlap, and we learn what it all means

The real crazy part is how something as simple as sound can carry so much information and how reliably our brains can tell it all apart and make sense of it