Deutsche Bank says expectations are too high for the iPhone 8

Not everyone is excited about the upcoming iPhone 8 launch.

Deutsche Bank said Tuesday in a research note that it thinks other banks are taking an overly optimistic view of the upcoming smartphone launch, and that it probably won't sell as well as expected.

Notably, Deutsche Bank says the iPhone 8 will not sell as many phones as the iPhone 6 and iPhone 6 Plus in 2015. It doesn't expect the iPhone 8 to break any meaningful sales records.

The analysts's note comes as a stark contrast to ones from other banks like Credit Suisse, Citi, and Instinet, who have predicted that the iPhone 8 will drive a rally in sales at Apple.

But Deutsche Bank points out that the last time Apple sold a record number of phones, it was in the middle of a "supercycle" fueled by the addition of a bigger-screen option in the iPhone 6 Plus and the addition of China Mobile as a carrier.

This time around, Apple may not have quite as many upgrades to keep investors happy. According to a CNBC report, Deutsche Bank said:

The market has become overly optimistic on iPhone's potential sales into the upcoming iPhone launch this fall, and is ignoring the fundamental challenges Apple faces in the smartphone market, which include saturation in mature markets, elongating refresh cycles, declining share plus increased competition in China, and a growing secondary market

Don't let that sway your opinion too much. As 9to5Mac points out, Deutsche Bank doesn't have the best track record when it comes to iPhone analysis. The bank wrongly predicted the iPhone 7 would not include Lightning EarPods and in May argued the iPhone 8 might not even launch this year.

The analysis also appears to underestimate just how enthralled some of Apple's biggest fans will be with the new, nearly bezel-free screen and upgrades to the camera. We're expecting a major "wow-factor" with the new phone, but only time will tell. The iPhone 8 is expected to launch in September.