Today is historic day for iPhone/iOS users as Apple release first ever OTA update, iOS 5.0.1. It may sound funny for Android/WebOS/Blackberry users as they’ve been used to OTA update for years.
Anyway, if you own the compatible iDevices (such as iPhone 3GS, 4, 4S or iPad or iPod touch 3rd, 4th gen), you should update it to see how’s the OTA thingy works.
I’ve already updated mine and here is the step by step screenshots.
- Firstly, go to Settings –> General –> Software Update. You should see the screen like following after you’ve pressed Download and Install button.

- After that, just sit back, relax and enjoy the show. The process will take about 10 mins depending on your internet connection speed.

- When you get the prompt like this, just click Install. Your iDevice will restart soon.

That’s it! Sorry to disappoint you, there’s no further step. Once your iPhone or iDevice has been rebooted, it is up and running with iOS 5.0.1.
Source : AllthingsD