If there is one thing Sony has proved it can do well it is compact phones. While other manufacturers have shrunk phone specs to match smaller sizes and prices, Sony has managed to keep enough power under the hood to tempt those who do not want a supersized phone but who are not willing to compromise on the hardware either.

The latest compact version of Sony’s flagship Android handsets to hit the market is the Xperia Z3. It’s a step up in many ways from its predecessor, with a larger screen, more power and a slightly better camera.

The compact phone comes with a 2.5GHz quad-core processor and 2GB of RAM. For storage you have 16GB internally, with the option of boosting that by 128GB with a micro SD card.

The good

The fact that Sony has managed to cram a larger screen into the same sized handset as before is worth a mention: more screen but with no added bulk is a good achievement. The power boost stops the phone from feeling sluggish and puts it on the same level as the full-size Z3, using the same processor.

Apps open quickly, multitasking is a snap and the phone appears to handle almost anything thrown at it, including a few games.

Like other recent Xperia handsets the Z3 Compact is waterproof and dustproof, with both ratings bumped up from its predecessor.

So, should you decide to take your phone for a bit of an underwater photography session, or hang around a desert or two, the chances are it will come out unscathed. Realistically, most people won’t test the ratings to their fullest, but on a more practical level it means the phone will survive a trip in the rain, a sweaty atmosphere or a dip in a sink (or toilet).

The bad

Although the Xperia Z3 compact makes some improvements from the Z1 – it uses glass on the back of the phone instead of plastic, for a start – there are one or two brave choices. Like the decision to include a plastic surround on the phone. That may provide you with a bit of extra cushion should the phone take a tumble, but not everyone will be a fan.

Sony has also moved to a nano sim for this phone. It’s a minor annoyance but one that will necessitate a trip to your friendly phone shop to get them to swap your sim card yet again for something smaller.

The rest

The bigger screen has come at a price. The previous version of the phone, the Z1 Compact, had a pixel per inch (ppi) density of 346. However, the Z3 only manages 319ppi, which means text isn’t quite as sharp and crisp as before.

But the question is: will you notice it? Probably not. It's also worth bearing in mind that the "compact" Z3 has a bigger screen than the iPhone 5S at 4.6 inches versus 4 inches, and the ppi count is only 326. And the handset is dwarfed beside the iPhone 6 Plus and Samsung Galaxy S5.

Battery life is respectable. You’ll get almost a full day out of the phone with normal use, though heavy video or gaming sessions will cut that, as you’d expect.

When it comes to the camera there is no significant increase in quality from the Z1 Compact, at least not on the surface of it. The camera is still 20.7 megapixels, and the sensor remains the same size. But the Z3 Compact has its top ISO setting bumped up to 12,800, which means better low-light performance.

The verdict

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Sony has put in yet another good compact performance, although Z1 Compact users may find it hard to justify the upgrade.