There has been speculation about what will become of Lenovo's phone division following the firm's acquisition of Motorola - and now we know the answer. The Chinese company is folding its mobile business into the Motorola brand and releasing all future handsets under that moniker, Digital Spy reports.

Former Motorola president Rick Osterloh will head up the combined smartphone division and Lenovo Mobile staff will join up with Motorola.

"Effective immediately, Rick Osterloh, formerly president, Motorola, will be the leader of the combined global smartphone business unit," a company spokesperson told NDTV Gadgets.

Lenovo is expected to release fewer handsets going forward, with a streamlined portfolio aimed at specific market points and territories.

Despite its continued success in China, Lenovo reported losses last quarter and was forced to lay off up to 3,200 employees.