Preface: you ship targets. Your end products are targets. Not projects. Think of a project as the umbrella above multiple targets.
For a more realistic example assume both Uber and Lyft were being developed by the your (umbrella) company.
The company has the following three environments:
The Debug and Release configs come out of the box with every new project you create. You can create as many additional configs as you want
This would require 3 configurations. To add a QA configuration follow the tutorial here

Did I apply this to the target or project?
I applied it to the project.
Ok so configs are only for projects and not for targets. Right?
Incorrect! It's confusing I know. You have to think of the project as a big container where you create your configs in there.
Then for each target (not project), for following tabs:
General, Resource Tags, Build rules, Info:
There is no difference between different configs
Signing and Capabilities tab:
You can switch between teams and sign it with a different team. This is useful if you want to sign your beta builds with your enterprise certificate but sign your Appstore build with app store certificate.
Build Settings tab:
For almost every variable in this section you can give a different value based on the config. Common Build Settings to customize are:
- Architectures - 'Build Active Architecture only'
- Build Options 'Debug Information Format'
- Packaging
- Set the plist you want per configuration.
- Change the bundle identifier (Packaging >> Product Bundle Identifier). If you switch values for a field then in the plist you'll see as:
- Signing
- Code Signing identity
- Code Signing Style (Manual or Automatic)
- Development team
- Provisioning Profile
- Apple Clang - Optimization Level
If the values are different then the row's value would be
<Multiple values>
and you basically have to expand that value to see what value is given for debug and what value is given for Release or QA config.
If all the values are the same then you'll just see the value that is given to all of them. By default the values are the same.
Build Phases:
There's no out GUI way of switching based on configuration. However you can still do run certain commands based on the configuration. Example:
if [ "${CONFIGURATION}" = "Debug" ]; then
"${PODS_ROOT}/SwiftLint/swiftlint" autocorrect
"${PODS_ROOT}/SwiftLint/swiftlint"
fi
Summary
Long story short, this allows you to have 2 different apps (targets) with the same code (project), in 3 different environments (dev, QA, release). You create the different environments using configurations.
To learn more on this I highly recommend you to read more about this in depth and understand what configuration files (xcconfig) is. It's much more simpler than you think. It's mainly a key value pair: