Cutting FQ2 by $1.1B/$0.08 to $21.3B/$0.76 (Street $21.7B/$0.76) on lower Windows division revs to $5.9B (from $6.7B) on CQ4 PC sales -6.4% per IDC and our revised Surface RT sales e.stimate of 1M units (prior 2M). PCs also hit MBD transactional revs cutting MBD to $5.6B from $5.9B. With PC weakness likely to linger we cut FQ3 to $21.0B/$0.76 from $21.5B/$0.78 (Street $20.9B/$0.78). FY13 est’s cut to $79.6B/$2.80 (revs +8.0%, margins 36.6%) from $80.8B/$2.90.
In comparison, Apple is estimated to have sold over 20 million iPads. Despite the slow sales Thill is cautiously optimistic about the product noting that Microsoft only sold the device at its stores and that the company's use of Intel chips is good for corporations.