A compact portable telephone comprises a housing having a main body and an extending sleeve-like portion mounted for longitudinal slidable movement between a retracted position when not in use (see FIG. 2), and an extended position (see FIG. 1) for use. In a preferred arrangement, the earphone is present in the main body and the microphone is in the extending portion. The telephone includes a plurality of buttons or keys which can be selectively actuated for operating the telephone, and in one embodiment the extending portion is adapted to conceal selected ones of the buttons or keys when it is in the closed position to prevent accidental actuation of these buttons or keys.