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Popup selfie camera > holepunch cutout by @MKBHD

While I've never owned a phone with either, I would say that my thinking is the same.

There are actually quite a few phones with pop up cameras out there. I think the Xiamo's Mi Mix 3 has the best solution, where you can slide the entire back up to reveal the hidden camera.

In the comments to this thread, waterproofing seems to be a big deal to people. While I was excited to get a waterproof phone and I planned to, I've never put it under water. It's had drinks thrown over it accidentally and survived but so did my iPhone 5s. The reaction to that is overblown in my opinion, but it's surely something that could be overcome.

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