I didn't plug my iphone in to my computer when I first got it

I didn't plug my iphone in to my computer when I first got it and I now have many pictures and apps on there, I have just plugged it in and my itunes gives me an option to set it up as a new iphone, will this wipe everything off?

Yes, it will wipe everything off.
Import your pics, as you should be doing regularly.\
iOS: Importing personal photos and videos from iOS devices to your ...
Transfer all itunes purchases to your computer.  Open itunes, connect iphone, click File>Devices>Transfer Purchases

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