Intel suffers smartwatch setback with Basis Peak recall

The company took the measure after finding that a design fault could result in overheating of the watch, leading to the possibility of causing blisters and burns to the owner.

“We are aware that a small number of customers have reported discomfort, blistering or burns on their wrist under the watch body,” Intel said.

In June, Intel announced to its customers that they shouldn't wear the watch over the safety fears.

"We had hoped to update the software on your watch to address the problem," the company said in a statement.

"Unfortunately, despite our best efforts, we aren't able to develop such a solution without completely compromising the user experience. As a result, we are asking that you return your Basis Peak watch and authorized accessories for a full refund."

The Peak watch was developed by Basis Science, a start-up acquired by Intel two years ago as demand for smartwatch technology was expected to skyrocket. Expectations for the demand have not been fully met, with the Apple Watch in particular failing to impress consumers.

Intel said it would refund customers the full amount of their purchase including the tax and shipping costs.