How do I create app folders on the home screen in iPhone OS 4 / iOS 4?

Folders can be created to organize groups of app icons on the home screen. This feature is now available using iOS 4.

To create a folder:

1. Touch and hold an app icon.
2. While the icons are wiggling, drag an app on top of another app.
3. A folder will be created containing the two apps.
4. Rename the folder or touch the folder icon to accept the default name.
5. Press the home button to stop the icons from wiggling.

To add more apps to a folder:

1. Touch and hold an app icon.
2. While the icons are wiggling, drag an app on top of the existing folder.
3. The app is now added to the folder.
4. Press the home button to stop the icons from wiggling.

Now when you touch a folder, the apps within the folder are displayed and can be selected.