The CEO did not acknowledge the rumors that they were developing their own mobile operating system, but given that we’ve seen Samsung launch alternative devices running on Tizen, this wouldn’t have been surprising. Not to mention the fact that he did not deny the rumors already speaks volumes.
We suppose his statement also makes sense. Right now Android is free for OEMs and consumers to use, although OEMs are required to get a license if they want to install Google’s services like Gmail, Google Maps, and so on. The license itself is free, but they need to be certified by third-party companies who in turn charge a fee for it.
Google makes money from Android through app sales by taking a cut, and also through advertising. In turn this has made Android a relatively cheap operating system for OEMs to use, thus increasing profit margins. This is why we said we wouldn’t be surprised if Huawei were to switch to their own creations if Google were to start charging them for it.