The idea is to force other people out of the market because they can&#x27;t continue to sell at your price. If Apple gave away their iPhone for free (and could sustain that with the cash they have) they could drive every other phone manufacturer out of the market (assuming everyone wanted iPhones). This works better if the product is homogenous.<p>In web products maybe Gmail is an example? Hard to compete with free and the # of features they have. It&#x27;s hard to come up with a better example because features is a big differentiator.<p>Once your competitors go out of business you&#x27;re the only guy left in town so you raise your prices to the moon and profit.