Source: Reuters

The e-reader battle will go into overdrive on Saturday, when Apple launches its iPad and takes on Amazon’s market-leading Kindle.

Despite the Kindle’s nearly two-and-a-half year head start, it faces stiff competition from iPad (which is not an e-reader per se but can function as such), according to a survey released on Tuesday by online shopping site PriceGrabber.com, a unit of Experian.

Kindle is slightly ahead of the iPad but head and shoulders above the Sony Reader and Barnes & Noble’s Nook in terms of brand recognition, according to the survey conducted last month.

But perhaps worrisome for Kindle, that advantage may not translate into continued dominance of the e-reader market. About 61 percent of consumers have heard of the Kindle, slightly more than 55 percent for the iPad. But more shoppers plan to buy the iPad as an e-reader in the next year- 20 percent of respondents plan to purchase the iPad versus 12% for the Kindle, with Sony and Barnes & Noble’s devices trailing far behind.

The largest drawback for any e-reader? Its price. The top price about 80 percent of respondents are willing to pay is $250, which is far below the iPad’s $499 starting price. (Though the iPad has other functions than its e-reader capabilities.)

PriceGrabber.com surveyed 1,631 online shoppers from Feb. 8-25.