Having BOGO (buy one get one) deals wasn't a sign that Android was in danger of being a failure, but Motorola certainly was. Motorola desperately needed to have a hit with their models of the Droid so I suspect they practically gave them away to Verizon.
Here is one of the articles outlining Motorola's success but limited profits from Droid, see: http://www.bloomberg.com/news/2010-10-28/motorola-profit-top...