No, usually it is not damaged or broken. 
New appliances sometimes produce a smell when they are used for the first time. 
This is normal and will stop after you have used the appliance a few times. 
When you let it heat up again the next time, the smell should be gone. 
If the appliance continues to give off a strange smell, do not use it anymore and contact the Customer Care Center in your country or take the appliance to the nearest Philips service center.