I'm pretty sure you need to have a device to test on. Apple won't let you archive/submit and app otherwise.
If I have the simulator selected, my archive option is not available. Only when I have my device selected can I archive. See image
<img src="http://content.screencast.com/users/ArcadEd/folders/Jing/media/0668dcfe-9a31-4875-88f3-87f21cfde37f/2013-08-21_1150.png" border="0">
Here is a good guide on what all you need to develop and submit ios apps.