Open simulator, and press Command along with S at the same time, this will take a screenshot and save on desktop generally. you can also open simulator, go to file menu and select New Screenshot from there.
If you take a screenshot from within your app running on the simulator, and then save it to photos app on that simulator, then it is stored in some library folder of that specific Simulator.
It can be frustrating when you want to take a screenshot but your iPhone is frozen and unresponsive for unknown errors. In that case, you can press and hold the Power and Home buttons at the same time, but make sure to press the Power button a second before the Home button, which is the small change in iOS 10.
Over on iOS, life is simpler than Android. There's one hardware shortcut for all iOS devices, but no option to run third-party screenshot apps if you need to. The shortcut you need is Sleep/Wake+Home, which will save a screenshot in your Camera Roll and in the native Screenshots album, ushered in with iOS 9.
Update: I think that my answer is not optimal anymore, thanks to this other answer from Gurpartap Singh (where cmd+S directly saves the image to your desktop). I'm not sure from which version of the iOS Simulator is this possible, but it's better and faster!
You can also try cmd+ctrl+C while in the iOS simulator. Then open Preview or an image editing program and try cmd+N (the image is in the clipboard).
Edit: According to apple's new guidelines we need to provide high resolution screenshots. For that go to Simulator->Hardware->Device->iphone(Retina). You will be able capture images in 640 × 960 using cmd+S .
Press command+s in Simulator and the screenshot will appear on your Desktop (or wherever they go for you).
I use iOS Simulator Cropper, it's the best application, you can even select the screenshot type that you want, if it's for the App Store, Market...
For Those searching for options for Screen capture 960x640 / Higher (for 4-inch display). Go to simulater->Hardware->device change it to iphone(Retina-3.5 inch) or iphone(Retina-4 inch). And press command+s. Check Your Desktop. You got a screenshot of size 960x640 at your desktop.
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