“Your binary is not optimized for iPhone 5” (ITMS-90096) when submitting

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Update August 2016

When using Xcode 7+ and targeting iOS 8+ it is recommended to remove the .xib file and create a new LaunchScreen.storyboard by using the given template:
Add Files...

And than setting it in the Project File under App Icons and Launch Images:
App Icons and Launch Images

Original October 2015 Answer

So like @Aditya Deshmane I also use .xib file as my “Launch Image”.

Adding both Default-568.png and [email protected] to my root directory didn’t solve my issue.

I had to add the UILaunchImages key to my Info.plist:

<key>UILaunchImages</key>
<array>
    <dict>
        <key>UILaunchImageName</key>
        <string>Default-568</string>
        <key>UILaunchImageSize</key>
        <string>{320, 568}</string>
    </dict>
</array>

Info.plist
As described here: iOS Key UILaunchImages

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