Had a person in class with a MacBook Pro with a corporate IT configuration. They ran the iOS simulator and were unable to get location services to work. Turns out that your Mac’s location services are used by the iOS simulator, and they need to be enabled for location services to work. This is in System Preferences » Security.

The symptom you’ll likely see in the simulator is an error related to location services being disabled for this device, or something along those lines. This is persistent despite resetting content and settings from the iOS Simulator menu.