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I don't know how it got like this but half the screen is grey.
Do I need to replace the screen or the whole phone.
That's a hardware fault. Apple does not repair those, they replace the entire phone. The OOW replacement cost for an iPhone 4 is $149.
Apple does not sell iPhone parts. There are no legitimate sources for iPhone parts. Attempting to repair it yourself will result in forfeiting your ability to ever get it serviced/replaced by Apple.
You might be able to get it fixed cheaper at a third party cell phone repair shop, since your phone is already out of warranty. Definitely cheaper than $149, if they can fix it. Worth a shot!
Just be warned... If they open it up and can't fix it, Apple will no longer touch it.
It's well out of guarantee though
True, but it's going to cost a lot more than $149 to replace it if it's been opened by an unauthorized party.
So i just need to replace the lcd screen?