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Drag one app onto another app and hold it there until a square shows up and then release. It puts those two apps into a folder.
 
Andso I assume you can name or rename a folder as well? So if I create a folder for games I can name the folder "games" and do the same with news apps and so on?
Thanks for a reply.
 
Yes. When you open the folder, you can rename it.

It is pretty cool, apple made the folders automatically name themselves depending on what you stick in them first. Productivity, action games, etc.
 
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