All answers here are incorrect.
You cannot run the .IPA file on the simulator. The simulator runs files compiled for the x86 processor, and IPA files compiled for the ARM processor on the iPhone. In addition, .IPA files must contain a valid certificate, while simulator applications do NOT need a certificate.
After creating the application, go to the left navigation bar, select "Products"> "appName.app", right-click on it and select "Show in Finder". Finder will show the .app file, and you can send the file to your colleague / client and ask him to drag it into iOS Simulator.

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