The firm says owners of the Beats Pill XL should return the product because its battery can overheat.
More than 230,000 units have been sold in North America alone since they went on sale last year - the recall is worldwide.
At least one person has been injured by a defective unit.
"Apple has received eight reports of incidents of the speakers overheating, including one with a burn to a consumer's finger and one with damage to a consumer's desk," reported the US Consumer Product Safety Commission in a statement.
The firm is offering to send a box to customers to return the product if they complete a web form.
Apple sold the speakers for £269.95 from its own site.
It is offering Apple Store credit or an electronic payment of £215 in compensation to anyone who returns the item.
However, it will reimburse customers the full price they paid if they provide a receipt or other proof of purchase.
Apple paid $3bn (£2bn) to buy Beats Electronics, the speaker's manufacturer, and Beats Music, its subscription streaming music service, a year ago.
Apple is urging owners of one of its Beats loud speaker systems to stop using the kit because it poses a fire risk.