Here is my podfile I use in the project:
source \'https://github.com/CocoaPods/Specs.git\' platform :ios, \'9.0\' use_frameworks! pod \'AFNetworking\', \'~&
In my case, Neon wouldn't update for me. It turns out it was because of the deployment target.
Changed platform :ios, '8.0' to platform :ios, '10.0'
platform :ios, '8.0'
platform :ios, '10.0'
And update worked normally.