Wed Jun 10, 2015 4:56am EDT Zurich

Shares in AMS AG sank on Wednesday following a report in Swiss newspaper Finanz und Wirtschaft that the Swiss-listed sensor manufacturer had lost a key contract with Apple.

The stock fell as much as 27 percent before paring losses to trade 23.3 percent lower at 43 Swiss francs by 0430 ET.

"AMS would appear to have lost the contract for the next generation of Apple products," Finanz und Wirtschaft reported, citing sources close to the company.

Representatives for AMS were not immediately available for comment.

AMS makes components that boost Near Field Communication in Apple devices including the iPhone -- technology used for services such as contactless payments.

UBS analysts said the loss of the contract "is clearly a risk for the business,", estimating it would contribute around 8 percent of group sales in 2015.

"We are afraid the market is likely to hammer AMS shares, shooting first and asking questions later. Confidence in AMS will be substantially eroded," said analysts at Kepler Cheuvreux, which downgraded its rating on the stock to "hold" from "buy".