I'm not really surprised. A phone can often be cheaper, can do a lot of the same tasks (and some a PC can't do without special hardware), and generally has a better warranty program and tons of upgrade promotions. A lot of younger people have never needed to use a PC because they had tablets or phones.
I also think the concept of having to pay for an OS license is kinda stale for MS in particular because they're money grubbers in so many other ways. Just give out the OS for free to non-enterprise users and call it a day; it's not like they're using the revenue to provide desktop support or add customer value.