The biggest functional improvement for the Samsung Galaxy Z Fold 2 was the much more expansive external screen, but SamMobile reports that with the Samsung Galaxy Z Fold 3 the company appears to be planning to go backwards.
Last year the Samsung Galaxy Z Fold 2 had a large 6.2-inch external screen that made that screen finally usable, but according to their report, the Samsung Galaxy Z Fold 3 screen will only be 5.4 inch- the same as the original Samsung Galaxy Fold.
The stark difference is illustrated by this picture comparing the Fold vs Z Fold 2 from AndroidCommunity.
There is some compensation, in that the screen will reportedly feature a 120 Hz refresh rate and 2,260 x 816 resolution.
The reason for the backwards move is reportedly to support the S-Pen in the new handset, but I am not sure this is a trade-off buyers would want to make. Hopefully, this is a sign that Samsung plans to offer the Samsung Galaxy Z Fold 3 at a much cheaper rate, as the handset steps into the place of the more affordable Galaxy Note line.