Anytime I create a package within a package, and create classes within that sub-package prior to adding classes to the top level package, the packages always merge together.
For example I created the social package, and the contact package within. After adding a few classes to the contact package, Android studio automatically merged the two together as:

Now if I right click to create another class, it simply places it inside the contact package.
How can I "un-merge" pakcags to allow placing classes within the social package?
Try this
In Package explorer
1) Click on small(setting) icon
2) Uncheck Flatten Package and Hide empty middle packages option
see the image below

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