When you add a framework to your project in Xcode, make sure you use Path Type = “Relative to Current SDK”. There is no option for this when you add the framework. So after the framework has been added to your project, command-click on the framework and select Get Info.
Your paths should look something like this:
When you start developing using both the iPhone simulator and an actual iPhone device you technically switch SDK based on your target. And it’s a real pain to have to adjust all the framework paths each time.