I bought the iPhone 4s and my battery used to reach 32% and then the phone would shut off. Then it reached 46% and the same thing happens, and now it shuts off at 53%. And it start recharging from the percentage it shut off at. What does this mean?

What does this mean?

My iphone 4s just developed a similar problem.  Ultimately, after a visit to the Genius Bar at which I was offered a replacement phone for $149, I took the phone to a non-Apple repair shop which diagnosed the problem as tarnished pins in the docking connector and replaced the connector for $49.
The symptoms I experienced were that the phone would not pull a charge.  I tried different cables, wall outlet versus computer USB connection, etc.  The screen stayed black until I depressed the sleep button, at which time the red battery / lightening bolt symbol would flash three times and then the screen would go black. 
If your battery is dead, that icon will not show up at all.  If you get the icon, it means your battery is run down and needs to recharge, but the defective docking connector is preventing the battery from taking the charge.

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