How do I add folders on Android 4.0?

Folders are just folders on your Home Screen that let you organize your shortcuts on your Home Screen. You can set a folder to store just web shortcuts, or just music apps, or your least used apps.

To add a folder, simply tap and hold (long press) your finger on any icon on your home screen, and drag it over top of another shortcut you want to add to the folder. A circular folder will appear on your Home Screen. You may tap it to open it, then once opened, tap the title-bar of the folder to rename it. Tap on the home screen to close. You may now long press and drag and drop shortcuts icons onto your folder icon to store them in there.