Sony has released three variants to their 2015 flagship device, the Xperia Z5, Z5 Premium and the Z5 Compact. As the name suggests, the Z5 Compact is (almost) the same phone, but smaller in size.
On the surface, the Z5 Compact is a smaller and lighter device (against the Z5) with 4.6 inch screen that packs a resolution of 720 x 1280 pixels at a pixel density of 323 ppi. It comes with Sony's signature Triluminos Display technology as well as the X-Reality Engine. This is the only area (excluding the battery downgrade) where the Z5 Compact differs to the actual Xperia Z5.
Coming over to the power house, the Z5 Compact runs on a Qualcomm Snapdragon 810 (the same as the one found in its big brother). It has a Quad-core 1.5 GHz Cortex-A53 + Quad-core 2.0 GHz Cortex-A57 processor alongside an Adreno 430 GPU. In simple English, it means that the Z5 Compact can pretty much handle whatever you throw at it.
This one came as a shocker to some, realizing that the Z5 Compact also has the same primary camera (as the one present in the Z5). Yes, the same 23 megapixel sensor at an aperture of f/2.0 and an LED flash. It also records videos in 4K (at 30 fps) as well as in slow-motion 720p (at 120 fps). The front camera, yet again, is a 5.1 MP f/2.4 one, which records videos in full HD 1080p as well.
Another (minor) change is a small downgrade in the battery. The Z5 Compact runs on a 2700 mAh battery (instead of a 2900 mAh one found in the Z5). Bottom line is that the Xperia Z5 Compact is literally just a smaller version of the actual Xperia Z5 (with a little downgrade in the battery). So if you're the type of person who is not in to phablets, this may just be the best option for you out there!