Intel is recalling its fitness watches: 'It is important you stop using your watch and return it immediately'

Intel issued a safety recall for its Basis-brand fitness watches on Wednesday, warning that the gadgets could cause blistering or burns and urging customers to return them immediately.

Intel said it would offer customers a full refund for the watches, which it said are vulnerable to overheating.

The recall, which Intel said it is doing voluntarily, represents a setback in the company's efforts to diversify its business beyond the declining PC industry. Intel acquired Basis in 2014 for a reported $100 million.

The Basis Peak watch which is being recalled, was the first Basis smartwatch model built after Intel acquired the company. The wearable gadget can monitor a person's heart rate, sweat output and physical movements, and was considered more advanced than some of the rival fitness watches by companies like Fitbit and Jawbone.

But the watch was apparently prone to overheating, which could cause burns or blisters on the wearer's skin. Intel first announced the issue in June, and recommended that consumers stop wearing the devices as a precautionary measure.

On Wednesday however, Intel said it was issuing a mandatory recall for all the watches and shutting down the accompanying Basis Peak online services by the end of the year.

"We had hoped to update the software on your watch to address the problem. Unfortunately, despite our best efforts, we aren't able to develop such a solution without completely compromising the user experience," Intel said in a statement on Wednesday. "As a result, we are asking that you return your Basis Peak watch and authorized accessories for a full refund at your earliest convenience. This was a tough decision, but your safety is our top priority."

Intel said it was aware that "a small number of customers have reported discomfort, blistering or burns on their wrist under the watch body." The company said the known reported cases of skin burns or blistering from the watches as of early June involved 0.2 percent of the watches sold.

The recall involves all Basis Peak watches, regardless of model or date of manufacture. The Peak watches ranged in price from $139 to $299.

Intel did not immediately return a request for comment.

You can read Intel's full recall notice here.