I would wait until a year before I would get too worried. Yes, in most males they should have dropped by now, but some are late bloomers and take longer. Late droppers and non-descending is more common with the smaller Yorkies. I also have a 2.5lb male...his didn't drop until well after a year-14 mo for one and 16 for the other. It can (and most commonly is) genetic, so you need to check to see if there is any history of it in his family tree.