The Storm did not break it. That is virtually impossible. If the dealer held to that story, I would be pretty forceful in pushing the service shop to show you an official BMW document that states an incompatible phone can break a Bluetooth module.

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SOLD
2000 E38 750iL Highline Edition, Upgraded with the lastest 2006 X5 Electronics
MKIV Navigation, 16:9 Display, Bluetooth, TV/Video with Backup Camera, Sirius, and Aux Input