IPhone 4 OS 7.1.2 (11D257) display normal when switching on, turns to very high contrast primary colours only, no tonal graduation. Wifi no longer works.

iPhone 4 OS 7.1.2 (11D257) display normal when switching on, turns to very high contrast with bright primary colours only, no tonal graduation.Initially problem arose every time I switched the Camera on, but has worsened such that any application can cause it. In Camera, after a short time screen goes black. Also,  Wifi no longer works. 

You're welcome
In case you don't want to buy a new iPhone, Apple will replace the whole unit if you are willing to pay the service fee of 149$ for the iPhone4.
Out-of-warranty repair service
If your repair isn’t covered by Apple’s One Year Limited Warranty, AppleCare+, or AppleCare Protection Plan, your iPhone might be eligible for out-of-warranty service. For example, liquid damage isn’t covered by warranty but might be eligible for out-of-warranty service. Some damage isn’t eligible at all, for example if your device has been broken into multiple pieces. See Apple’s Repair Terms and Conditions for complete details.
Read Apple’s Repair Terms and Conditions
Model
Out-of-warranty service fee
Battery service*
iPhone 6 Plus
$329
$79
*available only if battery
fails Apple’s diagnostic test
iPhone 6
$299
iPhone 5s, iPhone 5c, iPhone 5
$269
iPhone 4s
$199
iPhone 4, iPhone 3GS, iPhone 3G,
Original iPhone
$149
Plus a $6.95 shipping fee, if required. Fees are in USD and exclude local tax. Pricing is for service through Apple. The final service fee we charge will be determined during testing and may be less than the service fee listed above. Pricing and terms vary for service through an Apple Authorized Service Provider.
copied from Service Answer Center - iPhone

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