The Newsstand folder on the iPhone is typically just used to store magazines, but if you don't use the service the app icon is a waste of space. However, if you want to store apps in the Newsstand folder, it's possible, and iDownloadBlog shows how to do it.
If you have a lot of apps you want to hide away, the Newsstand is a pretty great place for it if you don't want to hide apps with a third party utility or hide Newsstand with an app. Instead, this trick allows you to store any app you want inside Newsstand for a massive, infinite-scrolling app folder. However, it does require nearly perfect timing. Here's what you need to do:
Move the Newsstand folder to the second page of your home screen.
Move any apps you want in the Newsstand to the third page.
Swipe to the third page.
Press the home button, and then immediately tap and hold the app you want to move.
Continue holding the screen until your iPhone goes back to the home screen.
Release your hold and immediately swipe to the second page.
If the trick worked, wiggle mode should be active. Tap on the Newsstand folder to open it, and then press the home botton to close it. The app you tapped on should now be in the Newsstand folder.
It takes a little practice to get the timing perfect, but once you do, moving apps to the Newsstand is pretty quick. The only problem with this trick is that the apps will only stay in the Newsstand until you reboot the device. Still, if you're looking for a use for Newsstand, this should do the trick.
How to use Newsstand as an app folder without jailbreaking | iDownloadBlog