The device that went on sale in November 2013 in Australia has been found to overheat due to the use of a cheap battery kit sourced from China.
Apple said that following an investigation they had found that 'in rare cases' the battery is prone to overheating and is asking customers to stop using the devices. Users who have purchased one of the devices which is selling at JB Hi Fi for $397.
Customers who already own one of the devices have been asked to stop using the device which did not perform well in the Smarthouse small speaker shootout, to submit their return online, Apple said it will refund them with store credit or electronic payment.
'This product has been sold worldwide since January 2014 by Beats, Apple, and other retailers,' explained Apple.
'Customer safety is always a top priority at both Apple and Beats, and we have voluntarily decided to recall this product.
HOW TO RETURN YOUR BEATS PILL
Go to Apple's support page and complete the online form.
Apple will send a postage paid box to put the Pill XL speaker in.
After it has been received, Apple will apply either store credit or electronic payment within approximately three weeks.
The recall does not affect any other Beats or Apple products.
Product returns will only be processed via the website and not in stores.
'If you have a Beats Pill XL Speaker, please stop using it and follow the process to send it to Apple.
SmartHouse was unable to find the page on the Australia Apple web site.
The speaker is sold in five colours - black, metallic sky, pink, titanium and white - and can be identified by the Beats 'b' logo on the speaker grille and the words 'beats pill XL' on the handle.
This recall comes as rumours suggest Apple is gearing up to unveil its Beats streaming music later this month.
It could be announced as early as Monday's Worldwide Developer Conference in San Francisco.
However, it is believed delays with signing up record labels could cause its public launch to be delayed.