This is a complete list of all the upgrades that have been made to the
Galaxy S3 over the S2, Software and Hardware (if i have missed something
let me know)

Hardware

0 Shutter Lag
64GB Microsd exFAT Support
Apt-X Codec Support ( Improved lossless Bluetooth audio)
Active noise cancellation with dedicated mic
Audio Quality Improved (Wolfson DAC )
Backside illuminated sensor (improved camera quality)
Battery life Improved (2100 mAh, almost everything in this phone uses less
power)
Barometer sensor
Bluetooth v4.0 with A2DP, EDR
Bigger Screen (Better web browsing, Improved Multimedia experience with a
larger screen)
Burst Shots (up to 20 pics)
C Pen support
Eye tracking technology (Smart Stay -no more going to sleep while reading a
webpage)
Faster Mali-400 GPU
Front Camera HD video
GLONASS support (more accurate than stand alone GPS)
Gorilla Glass 2
HD screen
Internal Storage Improved 64GB
LED indicator
Louder Speakers (2x 2W Speaker)
NFC support (S beam- can transfer files up 300 Mbps)
S Pebble support (this will come in handy for gym junkies)
Quad Core -Exynos 4212 Quad (Benchmarks shows its the fastest Chipset ever
and uses less power)
RGB sensor
Slimline back (no more ass sticking out)
Thinner Bezel
Video Quality improved (High Profile recording at 17 Mbps)
Wireless Charging Support
Wi-Fi Improved ( Broadcom BCM4334 )

Software

50GB Dropbox (free on-line storage)
Allshare cast – Allows you to mirror your screen onto a TV or monitor
wirelessly -Need a dongle)
Direct call (don't need to press the "call" button any more)
Improved Social Network integration
Improved Voice Commands ( don't need to press any buttons, very use fall
when driving, it also easily passes the Wood Chuck test)

Pop up Play (multi task while watching a video)
Smart Alert ( don't need to turn on your phone to see if u have missed
calls or msgs, automatically vibrates when you pick it up to let you know)
Simultaneous HD video and image recording

38 Improvements 

http://forum.xda-developers.com/showthread.php?p=25755969

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