iPhone 5c's (16Gb & 32Gb) storage capacity showing 5.2Gb (phone, not iCloud).

I purchased 2 x iPhone 5c's for Christmas 2015, 1 x 16Gb, 1 x 32Gb. They were purchased as "Reconditioned" from UK highstreet chain, GAME. As I understand it, these are not secondhand phones but reconditioned previously returned units? They are in mint condition and came with a 12 month warranty in standard Apple sealed packaging.

Both phones were updated to iOS 9.2. They both show an internal capacity of 5.2Gb and O bytes available - surely their respective capcities of 16Gb & 32Gb (or close to that) should be shown and more importantly, be available? Even if the iOS was 8Gb or so, the capacity shouldn't be affected, just the space available. Consequently, they keep displaying "storage full" messages, even with the iCloud 5Gb storage turned On or Off.

It seems that for some reason, a glitch is limiting the capacity to only 5.2Gb.

Any clues?