In terms of the selling price of LCD/LED TV sets in India sharp is not being able to compete with the other leading manufacturers. I do not have idea if other manufacturers are using Sharp LCD panels. Takeover by a China based company will surely focus on the selling price.
The profit margin for small and medium size LCD has been sliding for years. It is not a surprise to me that Japanese manufacturers would transfer the technology to other manufacturers. They'd rather focus on the growing high profit margin market such as large size LCD and OLED. It is a good move to Sharp. I wish Sharp stays competitive in large size LCD. The quality of their TV is nice.
I think it's due to many factors:
1- The Koreans started from a low base, the Japanese have been at the top for decades
2- Government support - The Korean Government is betting on a small number of big conglomerates for the country's development
3- Large R&D expenditure: Korean firms are spending a lot of money on R&D backed up by Government's support
Sharp is just following what others in the west has been doing for quite some time. The benefits are mutual. Sharp will get royalties for its long held display technology leadership while Foxconn can ramp up its effort to provide more LCD displays for ipads, iphones and iTVs.
China is mainly manufacturing, so not that much competition with Japan. It will be interesting to know why South Korea grows so fast while Japan is not making much progress. Currency? government support?