my application running in simulator should read those files display data on simulator.
if i use that api, i can definitely access the contacts of iphone for that my application should run on iphone.Why don't you look at the Address Book Programming Guide for iPhone OS, which is part of Apple's documentation. It should answer your questions regarding accessing contacts.
I don't think you've yet explained fully enough why you would want an application that is running in the simulator to access the address book of a connected iPhone. What problem are you trying to solve with this proposed solution?...but i want to access contacts of iphone in the application which runs on simualtor.