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Research firm Strategy Analytics said 54 million smartphones were shipped in the period, making up 18 percent of the total handset market.

"This was the strongest period of growth for almost three years and the high-value smartphone market is leading the handset industry out of recession," said Tom Kang, a director at Strategy Analytics. "Sales are being driven by healthy operator subsidies, vigorous competition between vendors and a growing tide of lower-cost models using operating software like Symbian and Android."

Neil Mawston, another director at the company, said the global smartphone sector is heading in two different directions this year.

"Some smartphone vendors, such as Nokia, will chase growing mid-tier volumes in emerging markets such as China and India," he said. "Other brands, such as Motorola, will focus on mature markets like the U.S. and explore a new wave of services beyond Internet browsing and email such as high-quality video and navigation."

Finland's Nokia remained in the top spot, raising its share to 40 percent from 38.2 percent, but the gains came at the expense of margins. The company has been struggling to retain its lead by focusing on emerging markets, selling cheaper devices in regions such as China and South America, while North America remains its "problem child."

Research in Motion, the maker of Blackberry smartphones, slipped slightly to 19.7 percent from 20.3 percent, shipping 10.6 million units in the quarter, giving it the second position.

Apple's market share soared to 16.4 percent from 10.6 percent a year ago, due to strong iPhone sales -- 8.75 million units shipped in the quarter -- keeping it in third place globally.

Motorola, which was the second-largest phone maker just six years ago, sold 8.5 million phones in the quarter, falling behind Apple.

Nokia, RIM, Apple, Motorola and others are jostling for share in the smartphone market, looking to capitalize on the shift from personal computers to mobile devices.