What is a network effect? The network effect is exactly what it sounds like, a network is a relationship between two elements. Specifically，the more who use a product, the higher it’s value becomes to other users. And here is a case study about the relationship between technology adoption in phones with its network effects.
Firstly, a vast majority of social apps on our smartphones lays on the current technologies. The most representative example might be the Facebook, which harnesses the Global Position System technology to design the location function to add people nearby. This location function is quite useful for the app users to discover and share more interesting friends and novelty things. Just as the powerful technology adoption, the network effects of Facebook is considerably positive and finally convert a wide range of anonymous users into loyal customers.
Additionally, with digital cameras and internet availabilities in our phones, people are used of taking photos by their own smartphones. It is more convenient and easier for people to capture wonderful moments. A large number of apps focuses on taking and sharing pictures since the emergence of phone cameras. It is worthy to mention the Instagram, which is a fast-growing and quite popular app in our life. People tend to share and find beautiful photos on Instagram, with the new technology in editing pictures and good feedback. So the technology adoption in phone cameras benefits Instagram network effects.