Version: 1.2.0 (using KDE 4.4.5)
Currently, albums sort order is alphabetical only. (The images in an album can be sorted using several methods but this doesn't apply to the albums themselves.) The Calendar view is not equivalent to being able to sort the albums by date because it doesn't show one the album names. It's very useful to be able to see one's recent albums close to the top of the view tree, with the album names (i.e., the corresponding directory names) there too. The date for an album may be taken to be the date of the first image in it (coming from Metadata) or a date that the user specifies and is saved in the corresponding folder to a digiKam folder specific configuration file or to a central database. (The former would be preferable as it is easier to give someone a copy of a particular album with one's particular settings/edits for that album also copied and passed. Also, it would lend itself to script manipulation easily.)
These (both sorting albums by date and saving directory specific settings) are present in Picasa and are some of the features that one might wish to have when migrating to digiKam.
The only option for sorting albums is by name.
There should be an option to sort the albums by date too.
OS: Linux (i686) release 2.6.32-37-generic
Dup of the years old bug 227530.
*** This bug has been marked as a duplicate of bug 227530 ***
Fixed with https://bugs.kde.org/show_bug.cgi?id=227530