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Can water damage interfere with updating to ios 7?

godofhades

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Silly question. I have an Iphone 5 and been stuck on "connect to itunes" screen since forever. After countless hours of researching, I found out my iphone might have water damage (tiny red/pink dot inside the sim tray). I brought it second hand so sadly it sucks. Anyway my question would be, the iphone turns on but whenever I tried to update, the update bar goes through maybe 2/3 of the way before giving me a 1669 error. Can water damage interfere with me updating the software?
 
Worst thing about the iPhone is lack of water proofing, I must have killed 3 :(
Could well be , so many strange things happen with water damage ( I'm in phone no4 replaced this week )
 
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