Android May Be the Greatest Legal Destruction of Wealth in History

Bill Gurley — Bill Gurley thinks that Android is an unstoppable freight train that will prevail against all its rivals. For Google, Android is not even a product with a business plan. It's just a weapon at the service of their master domination strategy, a way to destroy any potential threats that may eventually kill their search monster. This is how they are doing it and the potential consequences.

So here is the kicker. Android, as well as Chrome and Chrome OS for that matter, are not "products" in the classic business sense. They have no plan to become their own "economic castles." Rather they are very expensive and very aggressive "moats," funded by the height and magnitude of Google's castle. Google's aim is defensive not offensive. They are not trying to make a profit on Android or Chrome. They want to take any layer that lives between themselves and the consumer and make it free (or even less than free). Because these layers are basically software products with no variable costs, this is a very viable defensive strategy. In essence, they are not just building a moat; Google is also scorching the earth for 250 miles around the outside of the castle to ensure no one can approach it. And best I can tell, they are doing a damn good job of it.