You can record a portion of the screen with built-in screenshot utility:
- Press Shift-Command-5 to show a control panel.
- Select .
- Select a portion of the screen you want to record. That would be the iPhone simulator.
- Click to stop recording.
- A thumbnail will appear at the bottom right corner of the screen. You can edit it before saving.
If you want to visualize mouse clicks, after step 1 select Options control and enable Show Mouse Clicks.