Is undescended testicle or absence of testicles from birth a problem?
Yes. If they are undescended, usually they are brought down surgically soon after birth, within a few months (sometimes they do take a while) If they are left there, it can cause problems with puberty, not to mention fertility. Sometimes though they can (in babies) move up and down, but they should finally descend and stay there.
It is a rare disorder which can be corrected by surgery. If the child is a male child and the testicles have not been seen then you may consult the pediatric doctor first and then a surgeon. This phenomenon is seen very rarely and is a result of genetic disorder. Conversely it also may be due to physiological (organic) cause and not at hereditary (genetic) level. Only a team of pediatric doctor with a surgeon can see the case first hand, determine the cause by doing suitable tests and suggest a remedy. At a genetic level it sometimes happens that the Y chromosome, responsible for sex differentiation in the male child has not been fully expressed due to some organic cause. I am speculating, but this is one plausible cause for what you’ve seen.