I enjoy fixing iPhones instead of junking them. If you keep all your original iPhone box and screenprotect your iPhone you can usually jailbreak, wipe and unlock your phone and sell it for as much as the cost of the new phone. Good reason to put on a screen and rear screenprotector and squirrel away your original box. Sell on Craig's list or eBay.
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Yes the camera does not need to be taken out. It can stay in. Removing the metal camera clip is a pain. This is the step that took me the longest and would have saved me an hour if I didn't have to do it. If you do take the clip off and take the camera out can you put a higher resolution camera in? Anyway when putting the clip back the clip arms/legs go on the outside of the receiving metal slots-NOT ON THE INSIDE. I tried too long to get them to clip on the inside thinking I was doing something wrong.