Even under your hypotheses, I'd say 100,000 faulty devices is already a very significant amount. In terms of retail price, we're looking at more than 60 million USD, and 100,000 customers who were sold a (possibly) flawed device.
I'm not sure what perspective should be taken into account, but I'm pretty sure we should not be simply looking at whether the rate of failures is above or below 1% given the volumes involved.