I have the same problem and since it was out of warranty, I figured why not try to take it apart. I think it's because there is water in the camera.
I was able to take it apart, and also may have figured out where it leaked from. We had a ton of rain over a matter of a week, and this is when the cameras either failed or had condensation on the lenses. I have 2 cameras out of a dozen or so that failed and they were the ONLY ones that were mounted upside down (where the image was rotated). The only place any water could settle and seep into the camera is through the speaker holes, which are facing up. So I figured that is where the water was coming in.
So moving forward, if the camera is mounted upside down, I would recommend to seal the speaker holes with silicon or duct tape. (the speakers are pretty worthless anyways).
Now the teardown:
- On the face of the camera I took a sharp utility knife where the black face meets the white edge. Once I got underneath it in 1 spot, walk the edge of the knife all the way around the circular face slowly. This will loosen the foam tape that is holding down the face to the body. Make sure to get all the way around the round face and then pry it off.
- To prepare it for reassembly, I cleaned up the foam seal that was holding down the black face. I did this on the body and the glass as much as possible using a flat screw driver or pin.
- The glass that covers the lens may be loose and that is also where the water may have gotten in. (Mine was loose and came right off). I will use a small amount of clear silicon to seal it up at reassembly.
- Once you get the face off you will see 4 holes with Philips screws. Remove these 4 screws using a long micro screw driver. Keep these safe as they have a red grommet to seal them in.
- The white exterior housing holds the clear housing. The clear housing has a blue rubber seal that locks it to the white housing. So the next step is to separate them. Once you see the blue rubber seal all the way around, it should come apart easily.
- Once you get the 4 screws out, gently stick the screw driver into the same holes and gently try to loosen the WHITE housing from the clear unit. Use the screwdriver and wedge it into the hole and lean towards the center of the camera. Try this on each hole and hope that one of them pops the unit loose. If not, you can also use a utility knife to get in between the white housing and the clear unit. Once you get one side loose go around the whole unit to pop out the clear unit.
- Now that they are apart, drain the water (Mine had about a teaspoon of water in it). You do not have to disconnect anything, but you may want to for repairing something. If so disconnect the wires that are attached to the white housing. The one with 4 wires is a bit tough to remove, be very careful to not break the wires.
- I then let the pieces sit out in the sun for a day or 2. You can also stick the camera in a box and let sit INDIRECTLY with a blow dryer on low heat air dry them for about an hour or so. as it will get stuck inside the camera housing and inside the camera itself.
- I was lucky enough to be able to test it after drying and it worked great. Though the 2nd had a broken pin where the 4 wire connecter is on the camera motherboard.
- To reassemble, make sure the screw holes line up and reverse the process
- In order to seal it up again, I used a pin/toothpick to apply clear silicon to the edge of the clear unit and where the foam tape was and also around the Microphone and light holes that are on the face. I also used the same clear silicon to fill the holes in the speaker. which is where I think the water got in.