Chinese iphone 4s no memory space?

I have new iphone 4s but when I tried to add some music and other stuffs via Bluetooth or computer it says no memory left. :/ I have just unpacked the phone and never used it for anything. What might be the problem? It's impossible because the phone has 32 gb. When we checked the memory status it says 32 gb used and free memory 0.

It may be a counterfeit?