And, since this has come up again, here is the article from Apple
on this matter, again with the link to it at the end:
What to do before selling or giving away your iPhone, iPad, or
iPod touch
Use these steps to remove your personal information from a
device, even if you don't have it anymore.
If you still have your iOS device
Before you sell or give away your device, you should remove your
personal information. You shouldn't manually delete your
contacts, calendars, reminders, documents, photo streams, or any
other iCloud information while you're signed in to iCloud with
your Apple ID. This would delete your content from the iCloud
servers and any of your devices signed in to iCloud.
On your device with iOS 10, make sure that you sign out of iCloud
before you erase your device.
Follow these steps:
1. If you paired an Apple Watch with your iPhone, unpair your
Apple Watch.
2. Back up your iOS device.
3. Tap Settings > iCloud. Scroll down and tap Sign Out. In
iOS 7 or earlier, tap Delete Account.
4. Tap Sign Out again, then tap Delete from My iPhone and
enter your password.
5. Go back to Settings and tap General > Reset > Erase All
Content and Settings. If you turned on Find My iPhone, you might
need to enter your Apple ID and password.
6. If asked for your device passcode or Restrictions passcode,
enter it. Then tap Erase [device].
7. Contact your carrier for help transferring service to a new
owner. If you aren't using a SIM card with your device, you can
contact them to get help transferring service to the new owner.
When you erase your iPhone, iPad, or iPod touch, Find My iPhone
and Activation Lock is turned off.
If you no longer have your iOS device
If the steps above weren't completed and you no longer have your
device, use these steps:
1. Ask the new owner to erase all content and settings using
the above steps.
2. If you're using iCloud and Find My iPhone on the device,
sign in to iCloud.com or the Find My iPhone app on another
device, select the device, and click Erase. After the device has
been erased, click Remove from Account.
3. If you can't follow either of the above steps, change your
Apple ID password. This won't remove personal information that's
stored on your old device, but it will prevent the new owner from
deleting your information from iCloud.
4. If you're switching to a non-Apple phone, deregister
iMessage.
5. If you're using Apple Pay, you can remove your credit or
debit cards at iCloud.com. Choose Settings to see which devices
are using Apple Pay, then click the device. Next to Apple Pay,
click Remove.
Learn more
chr Make a backup of your iOS device or restore from a backup.
chr Get help if your iOS device is lost or stolen
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