Apple has updated its iBooks app for iOS devices to version 1.2. The new version introduces Collections and lets you group books or PDFs together. By default, Apple includes Books and PDFs collections, but you can add and edit ’em as you wish.

There’s also AirPrint support, support for full illustrated books and a tweaked icon. Additionally, iOS 4.2 users can now also fit more words per page using automatic hyphenation.

The iBookstore features books from major and independent publishers. Once you’ve bought a book — or download a free one — it’s displayed on your Bookshelf. Just tap it to start reading. The iBooks is a free download at the Apple App Store.