diff -u b/core/modules/user/user.install b/core/modules/user/user.install
--- b/core/modules/user/user.install
+++ b/core/modules/user/user.install
@@ -401,9 +401,15 @@
 /**
  * Migrate user pictures to Field API.
  */
-function user_update_8003() {
-  // @todo Chunk into 20 per batch pass.
-  $results = db_query('SELECT uid, picture FROM {users} WHERE picture > 0')->fetchAllKeyed();
+function user_update_8003(&$sandbox) {
+  // Initialize total values to process.
+  if (!isset($sandbox['total'])) {
+    $sandbox['total'] = (int) db_query('SELECT COUNT(picture) FROM {users} WHERE picture > 0')->fetchField();
+    $sandbox['processed'] = 0;
+  }
+
+  // Retrieve next 20 rows to migrate.
+  $results = db_query('SELECT uid, picture FROM {users} WHERE picture > 0 LIMIT 0, 20')->fetchAllKeyed();
   if ($uids = array_keys($results)) {
     // @todo Must not use API functions invoking hooks.
     $accounts = user_load_multiple($uids);
@@ -414,7 +420,15 @@
       }
     }
   }
-  db_drop_field('users', 'picture');
+
+  // Report status.
+  $sandbox['processed'] += count($results);
+  $sandbox['#finished'] = 1 - $sandbox['processed'] / $sandbox['total'];
+
+  // Delete {users}.picture after processing all values.
+  if ($sandbox['#finished'] == 1) {
+    db_drop_field('users', 'picture');
+  }
 }
 
 /**
diff -u b/core/modules/user/user.test b/core/modules/user/user.test
--- b/core/modules/user/user.test
+++ b/core/modules/user/user.test
@@ -957,28 +957,6 @@
   }
 
   /**
-   * Test HTTP schema working with user pictures.
-   *
-   * @todo OINK?
-   */
-  function DISABLEDtestExternalPicture() {
-    $this->drupalLogin($this->web_user);
-    // Set the default picture to an URI with a HTTP schema.
-    $images = $this->drupalGetTestFiles('image');
-    $image = $images[0];
-    $pic_path = file_create_url($image->uri);
-    variable_set('user_picture_default', $pic_path);
-
-    // Check if image is displayed in user's profile page.
-    $this->drupalGet('user');
-
-    // Get the user picture image via xpath.
-    $elements = $this->xpath('//div[@class="user-picture"]/img');
-    $this->assertEqual(count($elements), 1, t("There is exactly one user picture on the user's profile page"));
-    $this->assertEqual($pic_path, (string) $elements[0]['src'], t("User picture source is correct: " . $pic_path . " " . print_r($elements, TRUE)));
-  }
-
-  /**
    * Tests creation, display, and deletion of user pictures.
    */
   function testCreateDeletePicture() {