That is correct. It is recording to microSD regardless if there is an internet connection or not. However, how you can access that footage is another matter.
If you experience power outage and the power comes back before the internet, then the footage will start recording into another folder. Once the internet is back online, then the cameras will start recording into the correct folder automatically (so you can playback on the app). You do not need to power cycle the cameras.
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Situation 1: Camera was working, but internet goes down and comes back up 2 hours later. Once internet is restored, you can playback the footage in the app even with those 2 hours (this is only for older 4.xx.11.8391 firmware). The firmware 4.xx.13.0416 or newer introduced a new behaviour which will only playback an additional 30 minute in the app from the time of the internet outage (AKA OG behaviour).
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Situation 2: Camera was working, but internet goes down and you immediately unplug / plug the camera and internet comes back up 2 hours later. Once internet is restored, you can’t playback the missing 2 hour footage in the app.
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Situation 3: Camera was working, but internet & power goes out. Power comes back on almost immediately, but internet comes back on 2 hours later. Once internet is restored, you can’t playback the missing 2 hour footage in the app.
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Situation 4: No internet and you power on the camera. Once internet is restored, you can’t playback footage in the app.
Situation 2 and 3 may seem very similar, but Situation 2 was self induced so remember to don’t do that. There’s probably more situation to this, but I think you get the idea.
Please read my post below for more info.