Bill Gurley of Benchmark Capital foresaw Android's rise, and wrote an excellent essay about it in early 2011, "The Freight Train That Is Android."[1] His main point: Google is not trying to make a profit on Android; they're trying only to control the key layers between themselves and the consumer, by making these layers free or even <i>less than free</i>, which is a HUGE problem for Android's competitors, who must make a profit.<p>As he put it, "I don’t know if a large organized industry has ever faced this fierce a form of competition – someone who is not trying to 'win' in the classic sense. They want market share, but they don’t need economics. Imagine if Ford were faced with GM paying people to take Chevrolets? How many would they be able to sell? What if you received $0.10 for every free Pepsi you consumed? Would you still pay $1.50 for a Coke?"<p>I highly recommend you read (or re-read) Bill's prescient essay.<p>--<p>[1] <a href="http://abovethecrowd.com/2011/03/24/freight-train-that-is-android/" rel="nofollow">http://abovethecrowd.com/2011/03/24/freight-train-that-is-an...</a>