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What to do before you sell, give away, or trade in your iPhone, iPad, or iPod touch

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Question: Does my apple id and password need to be entered into an old ipone I sell to someone else?

I am selling my Iphone 4s to someone in person. He claims I will need to re-enter my apple id and password before he can re-boot the phone with his. Is this true?

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Question: Does my apple id and password need to be entered into an old ipone I sell to someone else?