Fuhu
| Company type | Private |
|---|---|
| Industry | Consumer electronics |
| Founded | 2008 |
| Founder | Robb Fujioka, John Hui, Steve Hui |
| Fate | Filed for bankruptcy on January 9, 2016; acquired by Mattel |
Key people | Robb Fujioka (co-founder), John Hui (co-founder), Steve Hui (co-founder), Jim Mitchell (CEO) |
| Products | Nabi tablet computers, urFooz digital collectibles, urDrive software, Fooz Kids platform, Nabi accessories |
| Parent | Mattel (after acquisition in 2016) |
Fuhu was recognized for its Nabi line of tablet computers. The company ceased operations and filed for bankruptcy on January 9, 2016. Subsequently, Mattel acquired the brand, maintaining production of the Nabi SE for several years before discontinuing the series in 2019.
History
Established in 2008 by Robb Fujioka along with brothers John Hui and Steve Hui, Fuhu derived its name from the first two letters of each founder's surname. John Hui, a co-founder of computer firm eMachines, played a key role in securing $1.5 million in initial funding through his connections within the hardware sector.
Hui recommended that Fujioka concentrate on software development rather than hardware due to the latter's narrow profit margins. Among Fuhu’s initial offerings were digital collectibles named urFooz, urDrive software that enabled applications to run directly from USB drives, and Fooz Kids—a curated platform granting children aged 3 to 10 access to roughly 33,000 safe websites with robust parental controls. This service earned praise from child safety organizations and parenting communities.
Launch of the Nabi
In mid-2011, Foxconn, a major licensee of Fuhu’s software, aimed to offload excess low-end tablets. Fuhu CEO Jim Mitchell and Fujioka attempted to install the Fooz Kids platform on these devices; however, stability issues prevented a viable product launch. Persisting, they procured a higher-quality generic tablet, integrated Fooz Kids, and added a shock-absorbing rubber bumper shaped like butterfly wings. This design inspired the name "Nabi," which means "butterfly" in Korean.
Ahead of the holiday shopping season, Fuhu secured an exclusive distribution agreement with Toys "R" Us for the Nabi tablet. The retailer initially ordered 10,000 units that sold out within two weeks. Following a subsequent order of 15,000 units, Toys "R" Us ended the partnership in January 2012, ceasing Nabi production. To sustain operations, Fuhu obtained a $10 million loan and developed the Nabi 2 for the 2012 holiday period. Distributed through Walmart, Best Buy, and Target, the Nabi 2 achieved sales of 750,000 units. This success propelled company revenue to $117.9 million in 2012.
In September 2012, Fuhu filed a lawsuit against Toys "R" Us alleging breach of contract and unfair competition after the retailer introduced its own rival tablet, the Tabeo. Fuhu claimed that Toys "R" Us provided insufficient marketing support for Nabi during 2011 and imitated features such as the rubber bumper.
Rapid expansion
By 2013, Fuhu had sold over two million units and earned first place on Inc. magazine’s ranking of fastest-growing companies in the United States. The firm expanded its finance department amid speculation about an upcoming initial public offering. With revenues reaching $196 million that year, industry analysts estimated Fuhu’s valuation could exceed $1 billion.
In January 2014, Forbes recognized Fuhu as America’s Most Promising Company. The brand also sponsored NASCAR driver Landon Cassill during the 2014 Daytona 500. Midway through 2014, Fuhu once again topped Inc.’s list of fastest-growing private companies, joining an elite group achieving this distinction consecutively.
Downturn and bankruptcy
Sales of Nabi tablets declined throughout 2014 and 2015 as competitors such as Apple, Samsung, and Amazon expanded their child-friendly offerings; additionally, Comcast’s Sprout network launched its own tablet product. In an attempt to revitalize sales in 2014, Fuhu introduced the Nabi Dream Tab with an initial order of 150,000 units; however, poor market performance led to surplus inventory and substantial debt owed to Foxconn. A class action lawsuit emerged following reports of overheating batteries in Nabi 2 devices.
To address these difficulties, Fuhu introduced a subscription model delivering exclusive content alongside options for device upgrades or returns. The company also released the Nabi Big Tab—a large-screen tablet intended for family sharing—but it received unfavorable reviews citing battery life under one hour and limited retail adoption; approximately only 4,000 units sold predominantly online during the 2014 holiday season.
In November 2015, Bloomberg reported that Fuhu halted shipments of Nabi tablets to major retailers due to financial disputes with Foxconn. According to Inc., Fuhu owed Foxconn between $60 million and $100 million; consequently, Foxconn suspended shipments pending payment. On December 7, 2015, after lender Tennenbaum Capital Partners collected $6.5 million in debts leaving insufficient funds to continue operations, Fuhu filed for Chapter 11 bankruptcy protection. Toy manufacturer Mattel submitted a stalking horse bid of $9.5 million and ultimately acquired Fuhu at auction for $21.5 million.
Products
Nabi tablets operated on Google’s Android OS enhanced with proprietary child-focused software by Fuhu. A passcode-protected unrestricted parent mode was also available.
The Nabi 2 model released in 2012 featured an 8 GB storage capacity powered by an Nvidia Tegra system-on-chip and included a 7-inch (18 cm) touchscreen display weighing approximately 1.3 pounds (0.59 kg). That same year saw expansion with the 5-inch (13 cm) Nabi Jr., designed for preschool-aged children, and the 10-inch (25 cm) Nabi XD targeting older children approaching adolescence. In October, themed devices featuring Disney and Nickelodeon branding were introduced.
At the 2014 Consumer Electronics Show, Fuhu revealed the third-generation Nabi Dream Tab developed in collaboration with DreamWorks Animation. This tablet incorporated content from DreamWorks franchises alongside titles like Angry Birds and programming from Cartoon Network, receiving regular exclusive updates; it also supported Disney and Nickelodeon content. Fuhu asserted that the Dream Tab’s processing capabilities rivaled those of the iPad.
Later in 2014, Fuhu launched the Nabi Big Tab available in both 20 inches (51 cm) and 24 inches (61 cm) screen sizes. Despite weighing over , it was designed with a specialized casing facilitating easy portability between rooms.
Following Mattel’s acquisition of Fuhu in 2016, only one Nabi tablet—the Nabi SE—was released under their management. It utilized a MediaTek MT8127 system-on-chip paired with a capacitive touchscreen and offered 16GB internal memory expandable via microSD card slots. Mattel also produced branded SE editions featuring American Girl, Barbie, Hot Wheels themes as well as a separate Fisher-Price version tailored for preschool users.
Accessories
Given the slim profit margin of approximately $5 per unit, Fuhu capitalized on accessories to enhance Nabi's overall profitability. Each Nabi tablet was equipped with a grid on its rear surface designed to hold rubberized block letters called KINABI, allowing children to customize their devices with names or words. Additionally, Fuhu marketed Nabi Frames—decorative stickers showcasing beloved children's television characters—alongside protective cases, backpacks, screen protectors, car chargers tailored for use in the back seat, and cameras.
In December 2012, Fuhu launched Nabi Notes, headphones specifically created for children that restricted volume to 80 dB to safeguard hearing health. By 2014, the range of accessories grew further to incorporate Nabi Karaoke and a wireless printer.
Philanthropy
Fuhu founded the charitable organization Nabi Inspire to assist families impacted by autism spectrum disorder through its Gifted 10K program, which involved donating tablets to increase awareness and offer valuable support.