This is the solution I find when I have trouble in updating my car diagnostic scanner BMW ICOM A firmware. Hope this helps you also.

Background:
I’m trying to update my ICOM firmware but I can only update the System/Boot firmware. Every time I try to update the Application firmware, I get a server timeout, no matter which browser I use.

Tool supported:
BMW ICOM A

Try this procedure here:
(NOTE: please be responsible to what you try, for some inexperienced may damage your device.)

1).Use your cable and connect BMW Engineer Software to port
2). Power ICOM by 12V power adapter or from 1x DLC
3). Use your browser (IE) and browse 169.254.92.38:60080/
User name: root
Password: NZY11502
4). Click “Update Firmware”,and you can find the version of firmware.
5). Select ICOM-BootImage-XX-XX-XX.bin, set image type to “SYSTEM”,
click “Send the file”
6). When it will say “Write the image file to the flash?”, click “Yes”,
then the ICOM led it will been RED
7). When it will say “The SYSTEM IMAGE update was successful”,
click “Update Firmware”
8). Select ICOM-ApplicationImage-XX-XX-XX.bin, set image type to “APPLICATION”,
click “Send the file”,the file is big so it will take some minutes to finish have patience.
9). When it will say “Write the image file to the flash?”, click “Yes”,
then the BMW ICOM A2+B+C led it will been RED again
10). When it is ok, click “reboot”.
Good Luck!