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See this topic,we are debating the same there:
/t5/Xperia-Z1-Compact/Tech-specs/m-p/942936#M13707
Those 1,6 GB usable are what's left from about 1,9 GB that are available on the device (out of 2GB).
@Don_Quixote Contact your local Xperia Care and request an official answer if you feel cheated (based on your reply to the other thread)
http://talk.sonymobile.com/t5/Xperia-Z1-Compact/Tech-specs/m-p/943243#M13717
It seems 200 MB of RAM are used from the box, according to the whitepaper. And to get to 1700,there are 100 more that cannot be explained. But after my way of thinking (even though I am not sure it applies to RAM as it does to internal memory), from about 1.9 GB available, you end up with the 1.7 for normal use.
Anytime
This is quite simple really you could go a route which most people do and multiply 2GB by 1000 and then divide it by 1024 giving 1.95GB which is readable but is wrong.
There are two correct ways after doing some math is to multiply 2 by 0.9313226 giving 1.86 readable memory, When you start using TB you multiply the amount of TB by 0.9094947 so for example if you have one, A 2TB drive multiplied by 0.9094947 gives you 1.81TB readable
Another way which is also correct is to multiply 2 by 1000, 3 times IE: 2x1000x1000x1000 then divide that by 1024 and again 1024 and again 1024 giving the same answer 1.86GB readable
These are how you get actual readable memory as to what is advertised - Try it yourself on your Pc's hard drive using these calculations
@Thommo it means I was on the right path, I did explain this in the other thread for Z1 compact.