Apple taps BlackBerry talent for auto software

Tech giant is looking to diversify revenue sources as iPhone sales falter

Apple has hired the former head of BlackBerry’s automotive software division as new leadership at the iPhone-maker’s car team as it places increased emphasis on developing self-driving technology, according to people familiar with the project.

Dan Dodge, the founder and former chief executive officer of QNX, the operating system developer that BlackBerry acquired in 2010, joined Apple earlier this year, the sources said. He is part of a team headed by Bob Mansfield, who, since taking over leadership of the cars initiative — dubbed Project Titan — has heralded a shift in strategy, according to a person familiar with the plan.

The initiative is now prioritizing the development of an autonomous driving system, though it’s not abandoning efforts to design its own vehicle. That leaves options open should the company eventually decide to partner with or acquire an established carmaker, rather than build a car itself. An Apple spokesman declined to comment.

Tapering demand for the iPhone, which accounts for more than half of Apple’s sales, has emphasized the importance of new sources of revenue. Research and development spending jumped by more than a quarter to $2.6 billion (U.S.) in the three months through June compared with a year earlier.

“The products that are in R&D, there is quite a bit of investment in there for products and services that are not currently shipping or derivations of what is currently shipping,” chief executive officer Tim Cook said in a conference call to discuss earnings Tuesday. “There’s a lot of stuff that we’re doing beyond the current products.”