Input lag on moving finger fast

I'm trying to create a fast pace game, in which user has to move finger on screen. But Android is showing me lag on touch input.

I created a simple scene to test, in which a user move sphere with finger. If user moves his finger too fast, the object trails behind finger (follow the finger but is far away from finger). Does anyone know how I can reduce input lag on continuous touch input on Android

Is there any option that i'm missing in player settings?

My test update function

Code (CSharp):

1. void Update () {
2.         if (Input.GetMouseButtonDown (0))
3.             drag = true;
4.  
5.         if (Input.GetMouseButtonUp (0))
6.             drag = false;
7.  
8.         if (drag) {
9.  
10.             float x = Camera.main.ScreenToWorldPoint (Input.mousePosition).x;
11.             float y = Camera.main.ScreenToWorldPoint (Input.mousePosition).y;
12.             transform.position = new Vector3 (x, y, 0);
13.         }
14.     }