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This shouldn't come as a huge surprise considering it will be one year from the initial U.S. release of the Surface Duo, but after the less than stellar reception and sales for the original, some may have thought the company would shutter its fledgling folding phone efforts.
On the contrary, it seems Microsoft has continued to throw more money at this program with numerous rounds of hiring for mobile user experience developers and others presumed to be related to the Surface Duo 2. Microsoft is known to be working with Google directly on some of the implementations surrounding the dual-screen form factor, which will find its way into Android 13 with Google itself rumored to be working on a foldable Pixel for later this year.
The user interface was one of our reviewer's biggest complaints, so it's good to hear that considerable attention is going there, but the hardware didn't help matters. While the dual-screen form factor is a clever take on foldables, and the exterior design and hinges worked well, the internals of the Surface Duo, like its Snapdragon 855 CPU and lack of 5G, were outdated at release and those massive bezels around the displays felt out of place on a modern device.
While there haven't been any specific leaks regarding the overall design yet, it's expected that Microsoft will stick to the dual-screen form factor rather than a folding display, like the Galaxy Z Fold 2. If nothing else, this should allow Microsoft to retain a pricing advantage over its opponents. Internal upgrades are rumored to include 5G support and presumably a move to the new Snapdragon 888 processor.