Wiktionary
n. (context computing English) A full restore of an electronic device, such as a PDA or a mobile phone, to its original settings.
Wikipedia
A factory reset, also known as master reset, is a software restore of an electronic device to its original system state by erasing all of the information stored on the device in an attempt to restore the device’s software to its original manufacturer settings. Doing so will effectively erase all of the data, settings, and applications that were previously on the device. This is often done to fix a software issue that the device is facing, but it could also be done to restore the device to its original settings. Such electronic devices include handheld computers such as PDAs and mobile phones. Since a factory reset entails deleting all information stored in the device, it is essentially the same concept as reformatting a hard drive. Pre-Installed applications and data on the card's storage card (such as a MicroSD card) will not be erased. A factory reset should be performed with caution, as it effectively destroys all data stored in the unit. Factory resets can often fix many chronic performance issues such as freezing and will not remove the device's operating system.