You may need to initially launch the itunes application on the iphone and "play" the music to get it going. The volume could be turned way down too so check that. My phone (non iphone) had to turn up the volume on the receiver separately from the main car stereo volume.
If you hook it up through the USB connection, then you get better music searching capabilities and don't have to worry about any bluetooth lag or gremlins. And a charge!
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