Chip orders placed for the iPhone 7/7 Plus will likely fall about 20% sequentially in the first quarter of 2017, according to an estimate made by analog chip suppliers.

Apple has requested its manufacturing partners stock ICs for a combined 50 million iPhone 7/7 Plus units in the third quarter of 2016, and another 45 million units in the fourth quarter, according to sources at analog chip firms. The estimated volume for the first quarter of 2017 has reduced to 35-37 million units, said the sources.

Previous reports quoted industry sources saying chip orders placed for the iPhone 7/7 Plus thus far for 2016 have been higher than previously estimated. In fact, Apple has set a goal of having its manufacturing partners make nearly 100 million iPhone 7/7 Plus devices by the end of 2016, higher than its suppliers' earlier prediction of 80-85 million units.