Apple reportedly canceled the project because the Apple Watch is a driver of iPhone sales
While Apple has a tight grip on the US market, Android has a strong presence around the world.
Makes sense. I'm making a huge assumption here, but I think a good-sized chunk of that Android market comprises people that have already decided they won't move to iPhone just to use an Apple Watch. So why risk cannibalising existing phone sales, just to sell some more watches?
It's apples fault for not selling iPhone with android OS. I use Android phones, which leaves me the option to buy from whatever company I want. I'd consider an iPhone with android OS if it had compatibility to other android and iOS devices. But for apple it seams to be more important to sell an OS and ecosystem and not more hardware. Though technically they sell some extra hardware by locking people up into a golden cage. Android will remain the smarter choice as you have freedom of choice. Apple you don't and there's no way to argue that fact away.