The latest smartphone report by analytics firm Canalys predictably has Nokia on top of the worldwide market, but it's Android that's driving the industry with key growth in both the US and China.

As listed in its recent Q2 financials, Canalys points out Nokia enjoyed growth of 41 percent year on year in Q2 2010, with shipments hitting 23.8 million across the quarter.

Indeed, all the major players in the smartphone market saw their shipments rise, with shipments of BlackBerry handsets also up by 41 percent to 11.2 million devices, Apple's iPhone shipments rising by 61 percent to 8.2 million.

Advantage Android

It's Android, however, that made a major splash across the quarter, with Canalys reporting that the platform's shipments surged by 886 percent year-on-year - thanks largely to handsets from partners HTC, Motorola, Samsung, Sony Ericsson and LG.

"The latest release of our detailed and complete country-level smart phone shipment data for Q2 2010 clearly reveals the impressive momentum Android is gaining in markets around the world," said Canalys VP and principal analyst, Chris Jones.

"In the United States, for example, we have seen the largest carrier, Verizon Wireless, heavily promoting high-profile Android devices, such as the Droid by Motorola and the Droid Incredible by HTC.

"These products have been well received by the market, with consumers eager to download and engage with mobile applications and services, such as Internet browsing, social networking, games and navigation."

Counting on China

Canalys also sites Android's growing presence in China as a major factor, with traditional market leader Nokia being challenged thanks to China Mobile's decision to develop its own Android-based platform OMS.

"The story in the Asia Pacific region is similarly optimistic around Android," added senior analyst, TY Lau.

"Android devices are gaining good traction in markets such as mainland China and South Korea, with growing numbers of consumers wanting more sophisticated smart phones."

China was the world’s second largest smartphone market in Q2 2010 for the sixth consecutive quarter, with shipments of 6.9 million units representing 11 percent of the worldwide total.

Android shipments in China hit 475,000 across the quarter, although the platform remains behind its three main competitors globally according to Canalys' numbers.

Nokia currently has a dominant 38 percent share, while North American market leader RIM is second with 18 percent, and Apple third with 13 percent of the market.

You can order the report in full from Canalys' website.