Hi, we also experience performance issues with the XCode sim… I don’t think that should worry you. All our games run just fine on actual devices.
The big difference is that Corona Sim is a just a native lua host that implements all the API in native OpenGL calls and runs by itself in a native app, if anything I would expect the Sim to be faster than any mobile device because PCs usually have stronger hardware.
The XCode simulator actually loads a virtual machine with the actual iOS rom, this process includes emulating all the iPhone hardware on your PC. This emulation is very slow because the PC hardware is very different.
For instance The CPU on iPhone uses the ARM instruction set while PCs use x86 (intel).
Just passing all direct CPU instructions through a software emulating layer is very very slow…
I’m sure other aspects of the hardware are completely different but I’m not really an expert…
So to sum this up. I think you will always experience much slower performance if running in a full emulation simulator (be it XCode / Android or Kindle simulators the vendors provide).
Still, these simulators are a very important testing stage before releasing the game because:
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You will spot issues you cannot spot in the Corona sim because some API calls are not supported in the Corona native Simulator, or theyperform differently than on an actual device. Some examples are the soft menu buttons on kindle fire, testing hardware buttons on android, testing your app supports iPhone 5 tall mode, and more…
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You can make sure your game runs on devices you do not have available for testing.
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It’s very easy to create screenshots directly from the XCode sim for all the resolutions required by apple for submission of the app.
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Testing your game doesn’t consume too much texture memory. The Corona sim will allow you much more than any mobile device. We had once a prototype that worked flawless on the Corona sim but crashed on startup on any device we tried 
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