KCL Error on sample code

Hi, When i run the IOS SDK example app and click any of the IBEACON demo options i get Ranging Error with KCLErrorDomain # 17.

I'm running xcode 6.1 on OS X.

Hey there—beacons require Bluetooth Smart on your device, which means iPhone 4S and later or iPad 3rd generation or later.

Sorry didn't get that. I'm running this on IOS Simulator and i use iphone 6 as the simulator device. What am i missing ?

iOS simulator doesn't support Bluetooth at all ):