One trick is to go to bluetooth on iphone and click blue arrow beside device name. Ensure show notifications is turned on.
On the cic unit under bluetooth(telephone) options, scroll and ensure "config bluetooth" has office ticked. That worked for me.
Then it takes a while to connect.
only new sms after connection established will be recieved. Previous ones will not show up. If you delete it off your phone, they will disappear off the CIC. Good for when you are driving and email or sms comes in, click the play button and it actually reads the message out to you.
You don't need any usb cable or bmw apps, just the latest bluetooth update and ios6.
Hope this helps.
Have included some photos in this other thread
http://www.bmw-sg.com/forums/introduction-greetings/70162-hi-all.html
Cheers