We are using new operator hence only one object should be created in Heap.
Sure - the new operation only creates one object. But its parameter is a String literal, which already represents an object. Any time you use a String literal, an object was created for that during class loading (unless the same literal was already used elsewhere). This isn't skipped just because you then use the object as a parameter for a new String() operation.
And because of that, the new String() operation is unnecessary most of the time and rarely used.
