"Could not find Developer Disk Image"

For the case XCode version is lower than iOS device's image, you can either copy the disk image from other already updated XCode(or maybe the internet) or upgrade your XCode.

The image is a folder with size about over 10MB, and place(find or put it) here under this path "/Applications/Xcode.app/Contents/Developer/Platforms/iPhoneOS.platform/DeviceSup‌​port/".

To enter Xcode.app package, hold control key and click on Xcode.app, you will find additional option like show package content or some word similar. Choose this option and you will enter Xcode.app like entering a normal folder.

Hope it's helpful and good luck!

I am facing the same issue on Xcode 7.3 and my device version is iOS 10.

This error is shown when your Xcode is old and the related device you are using is updated to latest version. First of all, install the latest Xcode version.

We can solve this issue by following the below steps:-

• Open Finder select Applications
• Right click on Xcode 8, select "Show Package Contents", "Contents", "Developer", "Platforms", "iPhoneOS.Platform", "Device Support"
• Copy the 10.0 folder (or above for later version).
• Back in Finder select Applications again
• Right click on Xcode 7.3, select "Show Package Contents", "Contents", "Developer", "Platforms", "iPhoneOS.Platform", "Device Support"
• Paste the 10.0 folder

If everything worked properly, your Xcode has a new developer disk image. Close the finder now, and quit your Xcode. Open your Xcode and the error will be gone. Now you can connect your latest device to old Xcode versions.

Thanks

Xcode 7.0.1 and iOS 9.1 are incompatible. You will need to update your version of Xcode via the Mac app store.

If your iOS version is lower then the Xcode version on the other hand, you can change the deployment target for a lower version of iOS by going to the General Settings and under Deployment set your Deployment Target:

Note:

Xcode 7.1 does not include iOS 9.2 beta SDK. Upgraded to Xcode to 7.2 beta by downloading it from the Xcode website.

1) I have experienced same issue, my Xcode version was 7.0.1, and I updated my iPhone to version 9.2, then upon using Xcode, my iPhone was shown in the section of unavailable device. Just like in image below:

2) But then I somehow managed to select my iPhone by clicking at
Product -> Destination -> Unavailable Device

3) But that didn't solved my problem, and it started showing:

Could not find Developer Disk Image

Solution) Then finally I downloaded latest version of Xcode version 7.2 from here and everything has worked fine for me.

Update: Whenever version of iPhone device is higher than version of Xcode, you may experience same issue, so you should update your Xcode version to remove this error.